Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 09, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Commission File Number | 1-9513 | |
Entity Registrant Name | CMS ENERGY CORPORATION | |
IRS Employer Identification No. | 38-2726431 | |
Entity Incorporation State | MI | |
Entity Address | One Energy Plaza | |
City | Jackson | |
State | MI | |
Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Smaller reporting company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 283,787,006 | |
Entity Central Index Key | 0000811156 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Consumers Energy Company | ||
Document Information [Line Items] | ||
Commission File Number | 1-5611 | |
Entity Registrant Name | CONSUMERS ENERGY COMPANY | |
IRS Employer Identification No. | 38-0442310 | |
Entity Incorporation State | MI | |
Entity Address | One Energy Plaza | |
City | Jackson | |
State | MI | |
Postal Zip Code | 49201 | |
City Area Code | 517 | |
Local Phone Number | 788‑0550 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Smaller reporting company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 84,108,789 | |
Entity Central Index Key | 0000201533 | |
Common Stock | ||
Document Information [Line Items] | ||
Title of each class | CMS Energy Corporation Common Stock, $0.01 par value | |
Trading Symbol | CMS | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of each class | CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSA | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | ||
Document Information [Line Items] | ||
Title of each class | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2078 | |
Trading Symbol | CMSC | |
Security Exchange Name | NYSE | |
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | ||
Document Information [Line Items] | ||
Title of each class | CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079 | |
Trading Symbol | CMSD | |
Security Exchange Name | NYSE | |
Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | ||
Document Information [Line Items] | ||
Title of each class | Consumers Energy Company Cumulative Preferred Stock, $100 par value: $4.50 Series | |
Trading Symbol | CMS-PB | |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Revenue | $ 1,445 | $ 1,492 | $ 3,504 | $ 3,445 |
Operating Expenses | ||||
Fuel for electric generation | 119 | 115 | 261 | 247 |
Purchased power – related parties | 16 | 19 | 34 | 38 |
Maintenance and other operating expenses | 343 | 326 | 697 | 636 |
Depreciation and amortization | 216 | 204 | 514 | 483 |
General taxes | 71 | 68 | 177 | 155 |
Total operating expenses | 1,227 | 1,237 | 2,927 | 2,827 |
Operating Income | 218 | 255 | 577 | 618 |
Other Income (Expense) | ||||
Interest income | 2 | 4 | 3 | 6 |
Allowance for equity funds used during construction | 3 | 1 | 5 | 2 |
Income from equity method investees | 2 | 4 | 1 | 7 |
Nonoperating retirement benefits, net | 23 | 22 | 46 | 46 |
Other income | 2 | 0 | 3 | 1 |
Other expense | (5) | (9) | (8) | (11) |
Total other income | 27 | 22 | 50 | 51 |
Interest Charges | ||||
Interest on long-term debt | 110 | 103 | 216 | 203 |
Interest expense – related parties | 3 | 0 | 3 | 0 |
Other interest expense | 19 | 10 | 35 | 21 |
Allowance for borrowed funds used during construction | (1) | (1) | (2) | (1) |
Total interest charges | 131 | 112 | 252 | 223 |
Income Before Income Taxes | 114 | 165 | 375 | 446 |
Income Tax Expense | 20 | 25 | 68 | 65 |
Net Income | 94 | 140 | 307 | 381 |
Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholders | $ 93 | $ 139 | $ 306 | $ 380 |
Basic earnings per average common share (in dollars per share) | $ 0.33 | $ 0.49 | $ 1.08 | $ 1.35 |
Diluted earnings per average common share (in dollars per share) | $ 0.33 | $ 0.49 | $ 1.08 | $ 1.35 |
Consumers Energy Company | ||||
Operating Revenue | $ 1,334 | $ 1,395 | $ 3,277 | $ 3,250 |
Operating Expenses | ||||
Fuel for electric generation | 88 | 86 | 194 | 188 |
Purchased and interchange power | 350 | 388 | 724 | 766 |
Purchased power – related parties | 16 | 19 | 34 | 39 |
Cost of gas sold | 104 | 108 | 505 | 485 |
Maintenance and other operating expenses | 320 | 298 | 639 | 580 |
Depreciation and amortization | 212 | 201 | 506 | 478 |
General taxes | 69 | 66 | 172 | 151 |
Total operating expenses | 1,159 | 1,166 | 2,774 | 2,687 |
Operating Income | 175 | 229 | 503 | 563 |
Other Income (Expense) | ||||
Interest income | 1 | 2 | 2 | 4 |
Interest and dividend income – related parties | 1 | 0 | 2 | 0 |
Allowance for equity funds used during construction | 3 | 1 | 5 | 2 |
Nonoperating retirement benefits, net | 22 | 20 | 43 | 42 |
Other income | 1 | 0 | 2 | 1 |
Other expense | (5) | (3) | (8) | (5) |
Total other income | 23 | 20 | 46 | 44 |
Interest Charges | ||||
Interest on long-term debt | 68 | 67 | 137 | 134 |
Interest expense – related parties | 3 | 0 | 3 | 0 |
Other interest expense | 4 | 4 | 7 | 9 |
Allowance for borrowed funds used during construction | (1) | (1) | (2) | (1) |
Total interest charges | 74 | 70 | 145 | 142 |
Income Before Income Taxes | 124 | 179 | 404 | 465 |
Income Tax Expense | 26 | 27 | 80 | 71 |
Net Income | 98 | 152 | 324 | 394 |
Preferred Stock Dividends | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholder | 97 | 151 | 323 | 393 |
Purchased and interchange power | ||||
Operating Expenses | ||||
Cost of sales | 356 | 393 | 734 | 775 |
Cost of gas sold | ||||
Operating Expenses | ||||
Cost of sales | $ 106 | $ 112 | $ 510 | $ 493 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 94 | $ 140 | $ 307 | $ 381 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss, net of tax of $- for all periods | 1 | 1 | 2 | 2 |
Amortization of prior service credit | 0 | (1) | (1) | (1) |
Investments | ||||
Unrealized loss on investments | 0 | 0 | 0 | (1) |
Derivatives | ||||
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- | (2) | (3) | ||
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- | 0 | 0 | ||
Other Comprehensive Loss | (1) | 0 | (2) | 0 |
Comprehensive Income | 93 | 140 | 305 | 381 |
Comprehensive Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 |
Comprehensive Income | 92 | 139 | 304 | 380 |
Consumers Energy Company | ||||
Net income | 98 | 152 | 324 | 394 |
Retirement Benefits Liability | ||||
Amortization of net actuarial loss, net of tax of $- for all periods | 1 | 0 | 1 | 1 |
Investments | ||||
Unrealized loss on investments | 0 | 0 | 0 | (1) |
Derivatives | ||||
Other Comprehensive Loss | 1 | 0 | 1 | 0 |
Comprehensive Income | $ 99 | $ 152 | ||
Comprehensive Income | $ 325 | $ 394 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of net actuarial loss TAX | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of prior service credit (TAX BENEFIT) | 0 | 0 | 0 | 0 |
Unrealized loss on investments (TAX BENEFIT) | 0 | 0 | 0 | 0 |
Reclassification adjustments included in net income TAX (TAX BENEFIT) | 0 | 0 | 0 | 0 |
Unrealized loss on derivative instruments (TAX BENEFIT) | (1) | (1) | ||
Unrealized loss on derivative instruments (TAX BENEFIT) | 0 | 0 | ||
Consumers Energy Company | ||||
Amortization of net actuarial loss TAX | 0 | 0 | 0 | 0 |
Unrealized loss on investments (TAX BENEFIT) | 0 | 0 | 0 | 0 |
Reclassification adjustments included in net income TAX (TAX BENEFIT) | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 307 | $ 381 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 514 | 483 |
Deferred income taxes and investment tax credit | 60 | 60 |
Other non-cash operating activities and reconciling adjustments | 9 | 22 |
Cash provided by (used in) changes in assets and liabilities | ||
Accounts and notes receivable and accrued revenue | 190 | 298 |
Inventories | 98 | 101 |
Accounts payable and accrued rate refunds | (48) | (41) |
Other current and non-current assets and liabilities | 55 | 112 |
Net cash provided by operating activities | 1,185 | 1,416 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (973) | (872) |
Increase in EnerBank notes receivable | (170) | (80) |
Purchase of notes receivable by EnerBank | (220) | 0 |
Cost to retire property and other investing activities | (47) | (56) |
Net cash used in investing activities | (1,410) | (1,008) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 1,455 | 794 |
Retirement of debt | (1,104) | (660) |
Increase in EnerBank certificates of deposit | 371 | 136 |
Decrease in notes payable | (97) | (170) |
Issuance of common stock | 6 | 36 |
Payment of dividends on common and preferred stock | (218) | (204) |
Payment of finance lease obligations and other financing costs | (29) | (43) |
Net cash provided by (used in) financing activities | 384 | (111) |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 159 | 297 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 175 | 204 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 334 | 501 |
Non-cash transactions | ||
Capital expenditures not paid | 150 | 140 |
Consumers Energy Company | ||
Cash Flows from Operating Activities | ||
Net income | 324 | 394 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 506 | 478 |
Deferred income taxes and investment tax credit | 41 | 35 |
Other non-cash operating activities and reconciling adjustments | 4 | 15 |
Cash provided by (used in) changes in assets and liabilities | ||
Accounts and notes receivable and accrued revenue | 187 | 172 |
Inventories | 96 | 98 |
Accounts payable and accrued rate refunds | (41) | (34) |
Other current and non-current assets and liabilities | (7) | (60) |
Net cash provided by operating activities | 1,110 | 1,098 |
Cash Flows from Investing Activities | ||
Capital expenditures (excludes assets placed under finance lease) | (963) | (859) |
Cost to retire property and other investing activities | (63) | (55) |
Net cash used in investing activities | (1,026) | (914) |
Cash Flows from Financing Activities | ||
Proceeds from issuance of debt | 297 | 544 |
Retirement of debt | (528) | (330) |
Decrease in notes payable | (97) | (170) |
Stockholder contribution | 675 | 250 |
Payment of dividends on common and preferred stock | (273) | (246) |
Payment of finance lease obligations and other financing costs | (2) | (21) |
Net cash provided by (used in) financing activities | 72 | 27 |
Net Increase in Cash and Cash Equivalents, Including Restricted Amounts | 156 | 211 |
Cash and Cash Equivalents, Including Restricted Amounts, Beginning of Period | 56 | 65 |
Cash and Cash Equivalents, Including Restricted Amounts, End of Period | 212 | 276 |
Non-cash transactions | ||
Capital expenditures not paid | $ 138 | $ 116 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 312 | $ 153 |
Restricted cash and cash equivalents | 22 | 21 |
Accounts receivable and accrued revenue, less allowance of $20 in both periods | 749 | 964 |
Notes receivable, less allowance of $28 in 2019 and $24 in 2018 | 249 | 233 |
Assets held for sale | 40 | 0 |
Accounts receivable – related parties | 15 | 14 |
Accrued gas revenue | 10 | 16 |
Inventories at average cost | ||
Gas in underground storage | 353 | 450 |
Materials and supplies | 147 | 143 |
Generating plant fuel stock | 52 | 57 |
Deferred property taxes | 204 | 279 |
Regulatory assets | 18 | 37 |
Prepayments and other current assets | 83 | 101 |
Total current assets | 2,254 | 2,468 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 24,263 | 24,400 |
Less accumulated depreciation and amortization | 7,130 | 7,037 |
Plant, property, and equipment, net | 17,133 | 17,363 |
Construction work in progress | 973 | 763 |
Total plant, property, and equipment | 18,106 | 18,126 |
Other Non-current Assets | ||
Regulatory assets | 2,344 | 1,743 |
Accounts and notes receivable | 2,005 | 1,645 |
Investments | 64 | 69 |
Other | 519 | 478 |
Total other non-current assets | 4,932 | 3,935 |
Total Assets | 25,292 | 24,529 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 1,077 | 996 |
Notes payable | 0 | 97 |
Accounts payable | 627 | 723 |
Accounts payable – related parties | 9 | 10 |
Accrued rate refunds | 34 | 4 |
Accrued interest | 95 | 94 |
Accrued taxes | 295 | 398 |
Regulatory liabilities | 67 | 155 |
Other current liabilities | 182 | 147 |
Total current liabilities | 2,386 | 2,624 |
Non-current Liabilities | ||
Long-term debt | 11,236 | 10,615 |
Non-current portion of finance leases and other financing | 86 | 69 |
Regulatory liabilities | 3,786 | 3,681 |
Postretirement benefits | 443 | 436 |
Asset retirement obligations | 438 | 432 |
Deferred investment tax credit | 117 | 99 |
Deferred income taxes | 1,548 | 1,487 |
Other non-current liabilities | 364 | 294 |
Total non-current liabilities | 18,018 | 17,113 |
Commitments and contingencies | ||
Common stockholders’ equity | ||
Common stock, authorized 350.0 shares; outstanding 283.8 shares in 2019 and 283.4 shares in 2018 | 3 | 3 |
Other paid-in capital | 5,097 | 5,088 |
Accumulated other comprehensive loss | (67) | (65) |
Accumulated deficit | (182) | (271) |
Total common stockholders’ equity | 4,851 | 4,755 |
Noncontrolling interests | 37 | 37 |
Total equity | 4,888 | 4,792 |
Total Liabilities and Equity | 25,292 | 24,529 |
Consumers Energy Company | ||
Current Assets | ||
Cash and cash equivalents | 196 | 39 |
Restricted cash and cash equivalents | 16 | 17 |
Accounts receivable and accrued revenue, less allowance of $20 in both periods | 653 | 855 |
Assets held for sale | 40 | 0 |
Accounts receivable – related parties | 8 | 15 |
Accrued gas revenue | 10 | 16 |
Inventories at average cost | ||
Gas in underground storage | 353 | 450 |
Materials and supplies | 142 | 137 |
Generating plant fuel stock | 48 | 52 |
Deferred property taxes | 204 | 279 |
Regulatory assets | 18 | 37 |
Prepayments and other current assets | 71 | 83 |
Total current assets | 1,759 | 1,980 |
Plant, Property, and Equipment | ||
Plant, property, and equipment, gross | 23,833 | 23,963 |
Less accumulated depreciation and amortization | 7,046 | 6,958 |
Plant, property, and equipment, net | 16,787 | 17,005 |
Construction work in progress | 960 | 756 |
Total plant, property, and equipment | 17,747 | 17,761 |
Other Non-current Assets | ||
Regulatory assets | 2,344 | 1,743 |
Accounts and notes receivable | 29 | 27 |
Accounts and notes receivable – related parties | 103 | 104 |
Other | 434 | 410 |
Total other non-current assets | 2,910 | 2,284 |
Total Assets | 22,416 | 22,025 |
Current Liabilities | ||
Current portion of long-term debt, finance leases, and other financing | 47 | 48 |
Notes payable | 0 | 97 |
Accounts payable | 595 | 685 |
Accounts payable – related parties | 16 | 14 |
Accrued rate refunds | 34 | 4 |
Accrued interest | 58 | 59 |
Accrued taxes | 298 | 436 |
Regulatory liabilities | 67 | 155 |
Other current liabilities | 142 | 120 |
Total current liabilities | 1,257 | 1,618 |
Non-current Liabilities | ||
Long-term debt | 6,546 | 6,779 |
Non-current portion of finance leases and other financing | 86 | 69 |
Regulatory liabilities | 3,786 | 3,681 |
Postretirement benefits | 400 | 392 |
Asset retirement obligations | 435 | 428 |
Deferred investment tax credit | 117 | 99 |
Deferred income taxes | 1,851 | 1,809 |
Other non-current liabilities | 291 | 230 |
Total non-current liabilities | 13,512 | 13,487 |
Commitments and contingencies | ||
Common stockholders’ equity | ||
Common stock, authorized 350.0 shares; outstanding 283.8 shares in 2019 and 283.4 shares in 2018 | 841 | 841 |
Other paid-in capital | 5,374 | 4,699 |
Accumulated other comprehensive loss | (20) | (21) |
Accumulated deficit | 1,415 | 1,364 |
Total common stockholders’ equity | 7,610 | 6,883 |
Preferred stock | 37 | 37 |
Total equity | 7,647 | 6,920 |
Total Liabilities and Equity | $ 22,416 | $ 22,025 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts receivable and accrued revenue ALLOWANCE | $ 20 | $ 20 |
Accounts and notes receivable ALLOWANCE | $ 28 | $ 24 |
Common stock, authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, outstanding (in shares) | 283,800,000 | 283,400,000 |
Consumers Energy Company | ||
Accounts receivable and accrued revenue ALLOWANCE | $ 20 | $ 20 |
Common stock, authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, outstanding (in shares) | 84,100,000 | 84,100,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes In Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Other Paid-in Capital | Accumulated Other Comprehensive Loss | Retirement benefits liability | Investments | Derivative instruments | Derivative instruments | Accumulated Deficit | Noncontrolling Interests | Consumers Energy Company | Consumers Energy CompanyCommon Stock | Consumers Energy CompanyOther Paid-in Capital | Consumers Energy CompanyAccumulated Other Comprehensive Loss | Consumers Energy CompanyRetirement benefits liability | Consumers Energy CompanyInvestments | Consumers Energy CompanyAccumulated Deficit | Consumers Energy CompanyPreferred Stock |
Total Equity at Beginning of Period at Dec. 31, 2017 | $ 4,478 | $ 3 | $ 5,019 | $ (50) | $ (50) | $ 0 | $ 0 | $ (531) | $ 37 | $ 6,488 | $ 841 | $ 4,449 | $ (12) | $ (24) | $ 12 | $ 1,173 | $ 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock issued | 47 | |||||||||||||||||
Common stock repurchased | (10) | |||||||||||||||||
Common stock reissued | 20 | |||||||||||||||||
Stockholder contribution | 250 | |||||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 1 | 1 | ||||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||||
Unrealized loss on investments | (1) | (1) | (1) | (1) | ||||||||||||||
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- | 0 | |||||||||||||||||
Net income | 381 | 380 | 1 | 394 | 394 | |||||||||||||
Dividends declared on common stock | (203) | (245) | ||||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||||
Total Equity at End of Period at Jun. 30, 2018 | $ 4,709 | 5,076 | (61) | (60) | (1) | (346) | 37 | 6,888 | 841 | 4,699 | (29) | (28) | (1) | 1,340 | 37 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.7150 | |||||||||||||||||
Total Equity at Beginning of Period at Dec. 31, 2017 | $ 4,478 | 3 | 5,019 | (50) | (50) | 0 | 0 | (531) | 37 | 6,488 | 841 | 4,449 | (12) | (24) | 12 | 1,173 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- | 0 | |||||||||||||||||
Total Equity at End of Period at Dec. 31, 2018 | 4,792 | 3 | 5,088 | (65) | (63) | 0 | $ (2) | (271) | 37 | 6,920 | 841 | 4,699 | (21) | (21) | 0 | 1,364 | 37 | |
Total Equity at Beginning of Period at Mar. 31, 2018 | 4,633 | 3 | 5,037 | (61) | (60) | (1) | 0 | (383) | 37 | 6,713 | 841 | 4,549 | (29) | (28) | (1) | 1,315 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock issued | 39 | |||||||||||||||||
Common stock repurchased | 0 | |||||||||||||||||
Common stock reissued | 0 | |||||||||||||||||
Stockholder contribution | 150 | |||||||||||||||||
Amortization of net actuarial loss | 1 | 1 | 0 | 0 | ||||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||||
Unrealized loss on investments | 0 | 0 | 0 | 0 | ||||||||||||||
Unrealized loss on derivative instruments, net of tax of $(1), $-, $(1), and $- | 0 | $ 0 | ||||||||||||||||
Net income | 140 | 139 | 1 | 152 | 152 | |||||||||||||
Dividends declared on common stock | (102) | (126) | ||||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||||
Total Equity at End of Period at Jun. 30, 2018 | $ 4,709 | 5,076 | (61) | (60) | (1) | (346) | 37 | 6,888 | 841 | 4,699 | (29) | (28) | (1) | 1,340 | 37 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.3575 | |||||||||||||||||
Total Equity at Beginning of Period at Dec. 31, 2018 | $ 4,792 | 3 | 5,088 | (65) | (63) | 0 | (2) | (271) | 37 | 6,920 | 841 | 4,699 | (21) | (21) | 0 | 1,364 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock issued | 17 | |||||||||||||||||
Common stock repurchased | (8) | |||||||||||||||||
Common stock reissued | 0 | |||||||||||||||||
Stockholder contribution | 675 | |||||||||||||||||
Amortization of net actuarial loss | 2 | 2 | 1 | 1 | ||||||||||||||
Amortization of prior service credit | (1) | (1) | ||||||||||||||||
Unrealized loss on investments | 0 | 0 | 0 | 0 | ||||||||||||||
Unrealized loss on derivative instruments | (3) | (3) | ||||||||||||||||
Net income | 307 | 306 | 1 | 324 | 324 | |||||||||||||
Dividends declared on common stock | (217) | (272) | ||||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||||
Total Equity at End of Period at Jun. 30, 2019 | $ 4,888 | 5,097 | (67) | (62) | 0 | (5) | (182) | 37 | 7,647 | 841 | 5,374 | (20) | (20) | 0 | 1,415 | 37 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.7650 | |||||||||||||||||
Total Equity at Beginning of Period at Mar. 31, 2019 | $ 4,895 | $ 3 | 5,087 | (66) | (63) | 0 | (3) | (166) | 37 | 7,324 | 841 | 5,049 | (21) | (21) | 0 | 1,418 | 37 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Common stock issued | 10 | |||||||||||||||||
Common stock repurchased | 0 | |||||||||||||||||
Common stock reissued | 0 | |||||||||||||||||
Stockholder contribution | 325 | |||||||||||||||||
Amortization of net actuarial loss | 1 | 1 | 1 | 1 | ||||||||||||||
Amortization of prior service credit | 0 | 0 | ||||||||||||||||
Unrealized loss on investments | 0 | 0 | 0 | 0 | ||||||||||||||
Unrealized loss on derivative instruments | (2) | (2) | ||||||||||||||||
Net income | 94 | 93 | 1 | 98 | 98 | |||||||||||||
Dividends declared on common stock | (109) | (100) | ||||||||||||||||
Dividends declared on preferred stock | (1) | |||||||||||||||||
Distributions and other changes in noncontrolling interests | (1) | |||||||||||||||||
Total Equity at End of Period at Jun. 30, 2019 | $ 4,888 | $ 5,097 | $ (67) | $ (62) | $ 0 | $ (5) | $ (182) | $ 37 | $ 7,647 | $ 841 | $ 5,374 | $ (20) | $ (20) | $ 0 | $ 1,415 | $ 37 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.3825 |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Standards | New Accounting Standards Implementation of New Accounting Standards ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. |
Consumers Energy Company | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Standards | New Accounting Standards Implementation of New Accounting Standards ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. 2017 Electric Rate Case: In June 2018, the MPSC issued an order authorizing an annual rate increase of $72 million , based on a 10.0 percent authorized return on equity. In July 2018, Consumers filed a reconciliation of total revenues collected from rates it self‑implemented in October 2017 to those that would have been collected under final rates. The reconciliation indicated that a $36 million refund would be required, which was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at June 30, 2019 . 2018 Electric Rate Case: In May 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $58 million , based on a 10.75 percent authorized return on equity. The filing requested authority to recover new investment in system reliability, environmental compliance, and technology enhancements. In October 2018, Consumers reduced its requested annual rate increase to $44 million . In January 2019, the MPSC approved a settlement agreement authorizing an annual rate decrease of $24 million , based on a 10.0 percent authorized return on equity. With the elimination of the $113 million TCJA credit to customer bills, the approved settlement agreement resulted in an $89 million net increase in annual rates. The settlement agreement also provided for deferred accounting treatment for distribution‑related capital investments exceeding certain amounts. Consumers also agreed to not file a new electric rate case prior to January 2020. Tax Cuts and Jobs Act: The TCJA, which changed existing federal tax law and included numerous provisions that affect businesses, was signed into law in December 2017. In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the reduction in the corporate income tax rate, and to implement bill credits to reflect that reduction until customer rates could be adjusted through Consumers’ general rate cases. Consumers filed, and the MPSC approved, such proceedings throughout 2018, resulting in credits to customer bills during 2018 to reflect reductions in Consumers’ electric and gas revenue requirements. Consumers filed additional proceedings to address amounts collected from customers during 2018 prior to the implementation of bill credits. In late 2018, the MPSC approved the refund of $31 million to gas customers over six months beginning in December 2018 and the refund of $70 million to electric customers over six months beginning in January 2019. Consumers had a recorded current regulatory liability of $9 million for these approved refunds at June 30, 2019 . In October 2018, Consumers filed an application to address the December 31, 2017 remeasurement of its deferred income taxes and other base rate impacts of the TCJA on customers. In April 2019, Consumers filed rebuttal testimony and is now proposing approval to begin returning $0.4 billion of net regulatory tax liabilities through rates to be determined in Consumers’ pending gas rate case and $1.2 billion through a temporary bill credit until customer rates can be adjusted through an electric rate case. Consumers’ total $1.6 billion of net regulatory tax liabilities comprises: • A regulatory tax liability of $1.7 billion associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code. This requires that the regulatory tax liability be returned over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. • A regulatory tax asset of $0.3 billion associated with plant assets that are not subject to normalization. Consumers proposed to collect this over 44 years from gas customers and over 27 years from electric customers. • A regulatory tax liability of $0.2 billion , which is primarily related to employee benefits. Consumers proposed to refund this amount to customers over ten years . In January 2018, Consumers began to reduce the regulatory liability subject to normalization by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019 , this reserve for refund of these excess deferred taxes totaled $53 million . For additional details on the remeasurement, see Note 10, Income Taxes . Costs of Coal-Fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. Consumers will file for securitization financing by May 2023, requesting the MPSC’s approval to securitize qualified costs of $657 million , representing the remaining book value in 2023 of the two coal-fueled electric generating units upon their retirement. In June 2019, Consumers removed this amount from plant, property, and equipment and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases. Energy Waste Reduction Plan Incentive: Consumers filed its 2018 waste reduction reconciliation in May 2019, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $34 million for exceeding its statutory savings targets in 2018. Consumers recognized incentive revenue under this program of $34 million in 2018. |
Consumers Energy Company | |
Public Utilities, General Disclosures [Line Items] | |
Regulatory Matters | Regulatory Matters Regulatory matters are critical to Consumers. The Michigan Attorney General, ABATE, the MPSC Staff, and certain other parties typically participate in MPSC proceedings concerning Consumers, such as Consumers’ rate cases and PSCR and GCR processes. These parties often challenge various aspects of those proceedings, including the prudence of Consumers’ policies and practices, and seek cost disallowances and other relief. The parties also have appealed significant MPSC orders. Depending upon the specific issues, the outcomes of rate cases and proceedings, including judicial proceedings challenging MPSC orders or other actions, could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. Consumers cannot predict the outcome of these proceedings. There are multiple appeals pending that involve various issues concerning cost recovery from customers, the adequacy of the record of evidence supporting the recovery of Smart Energy investments, and other matters. Consumers is unable to predict the outcome of these appeals. 2017 Electric Rate Case: In June 2018, the MPSC issued an order authorizing an annual rate increase of $72 million , based on a 10.0 percent authorized return on equity. In July 2018, Consumers filed a reconciliation of total revenues collected from rates it self‑implemented in October 2017 to those that would have been collected under final rates. The reconciliation indicated that a $36 million refund would be required, which was recorded on Consumers’ consolidated balance sheets as a current regulatory liability at June 30, 2019 . 2018 Electric Rate Case: In May 2018, Consumers filed an application with the MPSC seeking an annual rate increase of $58 million , based on a 10.75 percent authorized return on equity. The filing requested authority to recover new investment in system reliability, environmental compliance, and technology enhancements. In October 2018, Consumers reduced its requested annual rate increase to $44 million . In January 2019, the MPSC approved a settlement agreement authorizing an annual rate decrease of $24 million , based on a 10.0 percent authorized return on equity. With the elimination of the $113 million TCJA credit to customer bills, the approved settlement agreement resulted in an $89 million net increase in annual rates. The settlement agreement also provided for deferred accounting treatment for distribution‑related capital investments exceeding certain amounts. Consumers also agreed to not file a new electric rate case prior to January 2020. Tax Cuts and Jobs Act: The TCJA, which changed existing federal tax law and included numerous provisions that affect businesses, was signed into law in December 2017. In early 2018, the MPSC ordered Consumers to file various proceedings to determine the reduction in its electric and gas revenue requirements as a result of the reduction in the corporate income tax rate, and to implement bill credits to reflect that reduction until customer rates could be adjusted through Consumers’ general rate cases. Consumers filed, and the MPSC approved, such proceedings throughout 2018, resulting in credits to customer bills during 2018 to reflect reductions in Consumers’ electric and gas revenue requirements. Consumers filed additional proceedings to address amounts collected from customers during 2018 prior to the implementation of bill credits. In late 2018, the MPSC approved the refund of $31 million to gas customers over six months beginning in December 2018 and the refund of $70 million to electric customers over six months beginning in January 2019. Consumers had a recorded current regulatory liability of $9 million for these approved refunds at June 30, 2019 . In October 2018, Consumers filed an application to address the December 31, 2017 remeasurement of its deferred income taxes and other base rate impacts of the TCJA on customers. In April 2019, Consumers filed rebuttal testimony and is now proposing approval to begin returning $0.4 billion of net regulatory tax liabilities through rates to be determined in Consumers’ pending gas rate case and $1.2 billion through a temporary bill credit until customer rates can be adjusted through an electric rate case. Consumers’ total $1.6 billion of net regulatory tax liabilities comprises: • A regulatory tax liability of $1.7 billion associated with plant assets that are subject to normalization, which is governed by the Internal Revenue Code. This requires that the regulatory tax liability be returned over the remaining book life of the related plant assets, the average of which is 44 years for gas plant assets and 27 years for electric plant assets. • A regulatory tax asset of $0.3 billion associated with plant assets that are not subject to normalization. Consumers proposed to collect this over 44 years from gas customers and over 27 years from electric customers. • A regulatory tax liability of $0.2 billion , which is primarily related to employee benefits. Consumers proposed to refund this amount to customers over ten years . In January 2018, Consumers began to reduce the regulatory liability subject to normalization by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019 , this reserve for refund of these excess deferred taxes totaled $53 million . For additional details on the remeasurement, see Note 10, Income Taxes . Costs of Coal-Fueled Electric Generating Units to be Retired: In June 2019, the MPSC approved the settlement agreement reached in Consumers’ IRP, under which Consumers plans to retire the D.E. Karn 1 & 2 coal-fueled electric generating units in 2023. Under Michigan law, electric utilities have been permitted to use highly rated, low-cost securitization bonds to finance the recovery of qualified costs. Consumers will file for securitization financing by May 2023, requesting the MPSC’s approval to securitize qualified costs of $657 million , representing the remaining book value in 2023 of the two coal-fueled electric generating units upon their retirement. In June 2019, Consumers removed this amount from plant, property, and equipment and recorded it as a regulatory asset. Until securitization, the book value of the generating units will remain in rate base and receive full regulatory returns in general rate cases. Energy Waste Reduction Plan Incentive: Consumers filed its 2018 waste reduction reconciliation in May 2019, requesting the MPSC’s approval to collect from customers the maximum performance incentive of $34 million for exceeding its statutory savings targets in 2018. Consumers recognized incentive revenue under this program of $34 million in 2018. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Site Contingency [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include price‑fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. Plaintiffs are making claims for the following: treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees. After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption. In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. The matter was appealed to the U.S. Supreme Court, which in 2015 upheld the Ninth Circuit’s decision. The cases were remanded back to the federal district court. In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In March 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court. In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in August 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration. In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case is being transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019. These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in 2016. The renewed NPDES permit is valid through September 2020. At June 30, 2019 , CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million . CMS Energy expects to pay the following amounts for long‑term liquid disposal and operating and maintenance costs during the remainder of 2019 and in each of the next five years: In Millions 2019 2020 2021 2022 2023 2024 CMS Energy Long‑term liquid disposal and operating and maintenance costs $ 2 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters : Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $3 million and $4 million . At June 30, 2019 , Consumers had a recorded liability of $3 million , the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB‑containing materials at portions of the site. In 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million . Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2019 , Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA: In December 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal‑fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal‑fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge. In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million , was related to this dismissed claim. Consumers believes that the MCV Partnership’s remaining claims are without merit, but cannot predict the financial impact or outcome of the matter. Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de‑energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in April 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. Consumers is collaborating with the State of Michigan, local Native American tribes, and other stakeholders to evaluate the status of the cables and to determine if any additional action is advisable. Consumers cannot predict the outcome of this matter, but if Consumers is required to remove all the cables, it could incur additional costs of up to $10 million . Consumers has filed suit against the companies that own the vessels that allegedly caused the damage. Consumers will seek recovery from customers of any costs incurred. Consumers Gas Utility Contingencies Gas Environmental Matters : Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At June 30, 2019 , Consumers had a recorded liability of $68 million for its remaining obligations for these sites. This amount represents the present value of long‑term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent . The undiscounted amount of the remaining obligation is $74 million . Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2019 and in each of the next five years: In Millions 2019 2020 2021 2022 2023 2024 Consumers Remediation and other response activity costs $ 8 $ 16 $ 21 $ 7 $ 2 $ 2 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP‑related remediation costs and recovers them from its customers over a ten ‑year period. At June 30, 2019 , Consumers had a regulatory asset of $129 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million . At June 30, 2019 , Consumers had a recorded liability of less than $1 million , the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. As a result of the fire and the resulting curtailment, Consumers could be subject to various claims from impacted customers or claims for damages. Consumers may also be subject to regulatory penalties and disallowances of gas purchased, gas lost, and costs associated with the repairs to the Ray Compressor Station. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of any loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Consumers Electric and Gas Utility Contingencies Electric and Gas Staking: In June 2019, the MPSC ordered Consumers to show cause as to why it should not be found in violation of the MISS DIG Act. The MPSC alleges that Consumers violated the law by failing to respond in a timely manner to over 20,000 requests to mark the location of underground facilities in April and May 2019 and only partially responding to others. The law provides the MPSC with discretion in setting fines for violations, if any; however, the fines cannot exceed $5,000 per violation. An order by the MPSC in this proceeding is not expected until mid-2020. Consumers has resolved the backlog of staking requests. Consumers cannot predict the outcome of this matter, but it could be subject to regulatory penalties that have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and Consumers could be subject to increased regulatory scrutiny. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 2 July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 2, Regulatory Matters , there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self‑report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Consumers Energy Company | |
Site Contingency [Line Items] | |
Contingencies and Commitments | Contingencies and Commitments CMS Energy and Consumers are involved in various matters that give rise to contingent liabilities. Depending on the specific issues, the resolution of these contingencies could negatively affect CMS Energy’s and Consumers’ liquidity, financial condition, and results of operations. In their disclosures of these matters, CMS Energy and Consumers provide an estimate of the possible loss or range of loss when such an estimate can be made. Disclosures that state that CMS Energy or Consumers cannot predict the outcome of a matter indicate that they are unable to estimate a possible loss or range of loss for the matter. CMS Energy Contingencies Gas Index Price Reporting Litigation: CMS Energy, along with CMS MST, CMS Field Services, Cantera Natural Gas, Inc., and Cantera Gas Company, were named as defendants in four class action lawsuits and one individual lawsuit arising as a result of alleged inaccurate natural gas price reporting to publications that report trade information. Allegations include price‑fixing conspiracies, restraint of trade, and artificial inflation of natural gas retail prices in Kansas, Missouri, and Wisconsin. In 2016, CMS Energy entities reached a settlement with the plaintiffs in the Kansas and Missouri class action cases for an amount that was not material to CMS Energy. In 2017, the federal district court approved the settlement. Plaintiffs are making claims for the following: treble damages, full consideration damages, exemplary damages, costs, interest, and/or attorneys’ fees. After removal to federal court, all of the cases were transferred to a single federal district court pursuant to the multidistrict litigation process. In 2010 and 2011, all claims against CMS Energy defendants were dismissed by the district court based on FERC preemption. In 2013, the U.S. Court of Appeals for the Ninth Circuit reversed the district court decision. The appellate court found that FERC preemption does not apply under the facts of these cases. The appellate court affirmed the district court’s denial of leave to amend to add federal antitrust claims. The matter was appealed to the U.S. Supreme Court, which in 2015 upheld the Ninth Circuit’s decision. The cases were remanded back to the federal district court. In 2016, the federal district court granted the defendants’ motion for summary judgment in the individual lawsuit filed in Kansas based on a release in a prior settlement involving similar allegations; the order of summary judgment was subsequently appealed. In March 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the lower court’s ruling and remanded the case back to the federal district court. In 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases in Wisconsin. The plaintiffs appealed that decision to the U.S. Court of Appeals for the Ninth Circuit and in August 2018, the Ninth Circuit Court of Appeals reversed and remanded the matter back to the federal district court for further consideration. In January 2019, the judge in the multidistrict litigation granted motions filed by plaintiffs for Suggestion of Remand of the actions back to the respective transferor courts in Wisconsin and Kansas for further handling. In the Kansas action, the Judicial Panel on Multidistrict Litigation ordered the remand and the case is being transferred. In the Wisconsin actions, oppositions to the remand were filed, but the Judicial Panel on Multidistrict Litigation granted the remand in June 2019. These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions. Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context. If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations. Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002. Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site. In 2012, CMS Land and EGLE finalized an agreement that established the final remedies and the future water quality criteria at the site. CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in 2016. The renewed NPDES permit is valid through September 2020. At June 30, 2019 , CMS Energy had a recorded liability of $45 million for its remaining obligations for environmental remediation. CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs. The undiscounted amount of the remaining obligation is $56 million . CMS Energy expects to pay the following amounts for long‑term liquid disposal and operating and maintenance costs during the remainder of 2019 and in each of the next five years: In Millions 2019 2020 2021 2022 2023 2024 CMS Energy Long‑term liquid disposal and operating and maintenance costs $ 2 $ 4 $ 4 $ 4 $ 4 $ 4 CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability. Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter. Equatorial Guinea Tax Claim: In 2002, CMS Energy sold its oil, gas, and methanol investments in Equatorial Guinea. The government of Equatorial Guinea claims that, in connection with the sale, CMS Energy owes $152 million in taxes, plus substantial penalties and interest that could be up to the amount of the taxes claimed. In 2015, the matter was proceeding to formal arbitration; however, since then, the government of Equatorial Guinea has stopped communicating. CMS Energy has concluded that the government’s tax claim is without merit and will continue to contest the claim, but cannot predict the financial impact or outcome of the matter. An unfavorable outcome could have a material adverse effect on CMS Energy’s liquidity, financial condition, and results of operations. Consumers Electric Utility Contingencies Electric Environmental Matters : Consumers’ operations are subject to environmental laws and regulations. Historically, Consumers has generally been able to recover, in customer rates, the costs to operate its facilities in compliance with these laws and regulations. Cleanup and Solid Waste: Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. Consumers believes that these costs should be recoverable in rates, but cannot guarantee that outcome. Consumers estimates that its liability for NREPA sites for which it can estimate a range of loss will be between $3 million and $4 million . At June 30, 2019 , Consumers had a recorded liability of $3 million , the minimum amount in the range of its estimated probable NREPA liability, as no amount in the range was considered a better estimate than any other amount. Consumers is a potentially responsible party at a number of contaminated sites administered under CERCLA. CERCLA liability is joint and several. In 2010, Consumers received official notification from the EPA that identified Consumers as a potentially responsible party for cleanup of PCBs at the Kalamazoo River CERCLA site. The notification claimed that the EPA has reason to believe that Consumers disposed of PCBs and arranged for the disposal and treatment of PCB‑containing materials at portions of the site. In 2011, Consumers received a follow‑up letter from the EPA requesting that Consumers agree to participate in a removal action plan along with several other companies for an area of lower Portage Creek, which is connected to the Kalamazoo River. All parties, including Consumers, that were asked to participate in the removal action plan declined to accept liability. Until further information is received from the EPA, Consumers is unable to estimate a range of potential liability for cleanup of the river. Based on its experience, Consumers estimates that its share of the total liability for known CERCLA sites will be between $3 million and $8 million . Various factors, including the number and creditworthiness of potentially responsible parties involved with each site, affect Consumers’ share of the total liability. At June 30, 2019 , Consumers had a recorded liability of $3 million for its share of the total liability at these sites, the minimum amount in the range of its estimated probable CERCLA liability, as no amount in the range was considered a better estimate than any other amount. The timing of payments related to Consumers’ remediation and other response activities at its CERCLA and NREPA sites is uncertain. Consumers periodically reviews these cost estimates. A change in the underlying assumptions, such as an increase in the number of sites, different remediation techniques, the nature and extent of contamination, and legal and regulatory requirements, could affect its estimates of NREPA and CERCLA liability. Ludington PCB: In 1998, during routine maintenance activities, Consumers identified PCB as a component in certain paint, grout, and sealant materials at Ludington. Consumers removed part of the PCB material and replaced it with non‑PCB material. Consumers has had several communications with the EPA regarding this matter, but cannot predict the financial impact or outcome. MCV PPA: In December 2017, the MCV Partnership initiated arbitration against Consumers, asserting a breach of contract associated with the MCV PPA. Under this PPA, Consumers pays the MCV Partnership a fixed energy charge based on Consumers’ annual average baseload coal generating plant operating and maintenance cost, fuel inventory, and administrative and general expenses. The MCV Partnership asserts that, under the Clean Air Act, Consumers should have installed pollution control equipment on coal‑fueled electric generating units years before they were retired. The MCV Partnership also asserts that Consumers should have installed pollution control equipment earlier on its remaining coal‑fueled electric generating units. Additionally, the MCV Partnership claims that Consumers improperly characterized certain costs included in the calculation of the fixed energy charge. In January 2019, an arbitration panel issued an order concluding that the MCV Partnership is not entitled to any damages associated with its claim against Consumers related to the Clean Air Act; the majority of the MCV Partnership’s claim, which estimated damages and interest in excess of $270 million , was related to this dismissed claim. Consumers believes that the MCV Partnership’s remaining claims are without merit, but cannot predict the financial impact or outcome of the matter. Underwater Cables in Straits of Mackinac: Consumers owns certain underwater electric cables in the Straits of Mackinac, which were de‑energized and retired in 1990. Consumers was notified that some of these cables were damaged as a result of vessel activity in April 2018. Following the notification, Consumers located, inspected, sampled, capped, and returned the damaged retired cables to their original location on the lake bottom, and did not find any substantive evidence of environmental contamination. Consumers is collaborating with the State of Michigan, local Native American tribes, and other stakeholders to evaluate the status of the cables and to determine if any additional action is advisable. Consumers cannot predict the outcome of this matter, but if Consumers is required to remove all the cables, it could incur additional costs of up to $10 million . Consumers has filed suit against the companies that own the vessels that allegedly caused the damage. Consumers will seek recovery from customers of any costs incurred. Consumers Gas Utility Contingencies Gas Environmental Matters : Consumers expects to incur remediation and other response activity costs at a number of sites under the NREPA. These sites include 23 former MGP facilities. Consumers operated the facilities on these sites for some part of their operating lives. For some of these sites, Consumers has no present ownership interest or may own only a portion of the original site. At June 30, 2019 , Consumers had a recorded liability of $68 million for its remaining obligations for these sites. This amount represents the present value of long‑term projected costs, using a discount rate of 2.57 percent and an inflation rate of 2.5 percent . The undiscounted amount of the remaining obligation is $74 million . Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2019 and in each of the next five years: In Millions 2019 2020 2021 2022 2023 2024 Consumers Remediation and other response activity costs $ 8 $ 16 $ 21 $ 7 $ 2 $ 2 Consumers periodically reviews these cost estimates. Any significant change in the underlying assumptions, such as an increase in the number of sites, changes in remediation techniques, or legal and regulatory requirements, could affect Consumers’ estimates of annual response activity costs and the MGP liability. Pursuant to orders issued by the MPSC, Consumers defers its MGP‑related remediation costs and recovers them from its customers over a ten ‑year period. At June 30, 2019 , Consumers had a regulatory asset of $129 million related to the MGP sites. Consumers estimates that its liability to perform remediation and other response activities at NREPA sites other than the MGP sites could reach $3 million . At June 30, 2019 , Consumers had a recorded liability of less than $1 million , the minimum amount in the range of its estimated probable liability, as no amount in the range was considered a better estimate than any other amount. Ray Compressor Station: On January 30, 2019, Consumers experienced a fire at the Ray Compressor Station, which resulted in the Ray Storage Field being off‑line or operating at significantly reduced capacity, which negatively affected Consumers’ natural gas supply and delivery capacity. This incident, which occurred during the extreme polar vortex weather condition, required Consumers to request voluntary reductions in customer load, to implement contingency gas supply purchases, and to implement a curtailment of natural gas deliveries for industrial and large commercial customers pursuant to Consumers’ MPSC curtailment tariff. The curtailment and request for voluntary reductions of customer loads were canceled as of midnight, February 1, 2019. Consumers investigated the cause of the incident, and filed a report on the incident with the MPSC in April 2019. In response, the MPSC issued an order in July 2019, directing Consumers to file additional reports regarding the incident and to include detail of the resulting costs in a future rate proceeding. As a result of the fire and the resulting curtailment, Consumers could be subject to various claims from impacted customers or claims for damages. Consumers may also be subject to regulatory penalties and disallowances of gas purchased, gas lost, and costs associated with the repairs to the Ray Compressor Station. At this time, Consumers cannot predict the outcome of these matters or other gas-related incidents and a reasonable estimate of any loss cannot be made, but they could have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and could subject Consumers’ gas utility to increased regulatory scrutiny. Consumers Electric and Gas Utility Contingencies Electric and Gas Staking: In June 2019, the MPSC ordered Consumers to show cause as to why it should not be found in violation of the MISS DIG Act. The MPSC alleges that Consumers violated the law by failing to respond in a timely manner to over 20,000 requests to mark the location of underground facilities in April and May 2019 and only partially responding to others. The law provides the MPSC with discretion in setting fines for violations, if any; however, the fines cannot exceed $5,000 per violation. An order by the MPSC in this proceeding is not expected until mid-2020. Consumers has resolved the backlog of staking requests. Consumers cannot predict the outcome of this matter, but it could be subject to regulatory penalties that have a material adverse effect on Consumers’ results of operations, financial condition, or liquidity, and Consumers could be subject to increased regulatory scrutiny. Guarantees Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 2 July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee. Additionally, in the normal course of business, CMS Energy, Consumers, and certain other subsidiaries of CMS Energy have entered into various agreements containing tax and other indemnity provisions for which they are unable to estimate the maximum potential obligation. The carrying value of these indemnity obligations is $1 million . CMS Energy and Consumers consider the likelihood that they would be required to perform or incur substantial losses related to these indemnities to be remote. Other Contingencies In addition to the matters disclosed in this Note and Note 2, Regulatory Matters , there are certain other lawsuits and administrative proceedings before various courts and governmental agencies, as well as unasserted claims that may result in such proceedings, arising in the ordinary course of business to which CMS Energy, Consumers, and certain other subsidiaries of CMS Energy are parties. These other lawsuits, proceedings, and unasserted claims may involve personal injury, property damage, contracts, environmental matters, federal and state taxes, rates, licensing, employment, and other matters. Further, CMS Energy and Consumers occasionally self‑report certain regulatory non‑compliance matters that may or may not eventually result in administrative proceedings. CMS Energy and Consumers believe that the outcome of any one of these proceedings and potential claims will not have a material negative effect on their consolidated results of operations, financial condition, or liquidity. |
Financings and Capitalization
Financings and Capitalization | 6 Months Ended |
Jun. 30, 2019 | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019 : Principal Interest Rate Issue/Retirement Date Maturity Date Debt issuances CMS Energy, parent only Term loan facility $ 300 variable January 2019 December 2019 Junior subordinated notes 1 630 5.875 % February 2019 March 2079 Term loan facility 2 165 variable June 2019 June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 % May 2019 February 2050 Total Consumers $ 300 Total CMS Energy $ 1,395 Debt retirements CMS Energy, parent only Term loan facility $ 300 variable February 2019 December 2019 Term loan facility 180 variable February 2019 April 2019 Total CMS Energy, parent only $ 480 Consumers First mortgage bonds $ 300 5.650 % May 2019 April 2020 Total Consumers $ 300 Total CMS Energy $ 780 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent ( 2.845 percent at June 30, 2019 ). Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 2 $ 548 CMS Enterprises, including subsidiaries September 30, 2025 1 $ 18 $ — $ 8 $ 10 Consumers 2 June 5, 2023 $ 850 $ — $ 7 $ 843 November 23, 2020 250 — 15 235 September 9, 2019 3 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. 3 In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022. Short‑term Borrowings: Under Consumers’ commercial paper program , Consumers may issue, in one or more placements , commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2019 , there were no commercial paper notes outstanding under this program. Dividend Restrictions : At June 30, 2019 , payment of dividends by CMS Energy on its common stock was limited to $4.9 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at June 30, 2019 , Consumers had $1.3 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the six months ended June 30, 2019 , Consumers paid $272 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million . Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. CMS Energy has entered into forward sales contracts having an aggregate sales price of $ 250 million . Presented in the following table are details of these contracts: Contract Date Maturity Date Number of Shares Initial Forward Price Per Share November 16, 2018 May 16, 2020 2,017,783 $ 49.06 November 20, 2018 May 20, 2020 777,899 50.91 February 21, 2019 August 21, 2020 2,083,340 52.27 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then‑applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts have or will be recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of June 30, 2019 , CMS Energy would have been required to deliver 621,923 shares. |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Financings and Capitalization | Financings and Capitalization Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019 : Principal Interest Rate Issue/Retirement Date Maturity Date Debt issuances CMS Energy, parent only Term loan facility $ 300 variable January 2019 December 2019 Junior subordinated notes 1 630 5.875 % February 2019 March 2079 Term loan facility 2 165 variable June 2019 June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 % May 2019 February 2050 Total Consumers $ 300 Total CMS Energy $ 1,395 Debt retirements CMS Energy, parent only Term loan facility $ 300 variable February 2019 December 2019 Term loan facility 180 variable February 2019 April 2019 Total CMS Energy, parent only $ 480 Consumers First mortgage bonds $ 300 5.650 % May 2019 April 2020 Total Consumers $ 300 Total CMS Energy $ 780 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent ( 2.845 percent at June 30, 2019 ). Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 2 $ 548 CMS Enterprises, including subsidiaries September 30, 2025 1 $ 18 $ — $ 8 $ 10 Consumers 2 June 5, 2023 $ 850 $ — $ 7 $ 843 November 23, 2020 250 — 15 235 September 9, 2019 3 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. 3 In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022. Short‑term Borrowings: Under Consumers’ commercial paper program , Consumers may issue, in one or more placements , commercial paper notes with maturities of up to 365 days and that bear interest at fixed or floating rates. These issuances are supported by Consumers’ revolving credit facilities and may have an aggregate principal amount outstanding of up to $500 million . While the amount of outstanding commercial paper does not reduce the available capacity of the revolving credit facilities, Consumers does not intend to issue commercial paper in an amount exceeding the available capacity of the facilities. At June 30, 2019 , there were no commercial paper notes outstanding under this program. Dividend Restrictions : At June 30, 2019 , payment of dividends by CMS Energy on its common stock was limited to $4.9 billion under provisions of the Michigan Business Corporation Act of 1972. Under the provisions of its articles of incorporation, at June 30, 2019 , Consumers had $1.3 billion of unrestricted retained earnings available to pay dividends on its common stock to CMS Energy. Provisions of the Federal Power Act and the Natural Gas Act appear to restrict dividends payable by Consumers to the amount of Consumers’ retained earnings. Several decisions from FERC suggest that, under a variety of circumstances, dividends from Consumers on its common stock would not be limited to amounts in Consumers’ retained earnings. Any decision by Consumers to pay dividends on its common stock in excess of retained earnings would be based on specific facts and circumstances and would be subject to a formal regulatory filing process. For the six months ended June 30, 2019 , Consumers paid $272 million in dividends on its common stock to CMS Energy. Issuance of Common Stock: In 2018, CMS Energy entered into an equity offering program under which it may sell, from time to time, shares of CMS Energy common stock having an aggregate sales price of up to $250 million . Under this program, CMS Energy may sell its common stock in privately negotiated transactions, in “at the market” offerings, through forward sales transactions or otherwise. CMS Energy has entered into forward sales contracts having an aggregate sales price of $ 250 million . Presented in the following table are details of these contracts: Contract Date Maturity Date Number of Shares Initial Forward Price Per Share November 16, 2018 May 16, 2020 2,017,783 $ 49.06 November 20, 2018 May 20, 2020 777,899 50.91 February 21, 2019 August 21, 2020 2,083,340 52.27 These contracts allow CMS Energy to either physically settle the contracts by issuing shares of its common stock at the then‑applicable forward sale price specified by the agreement or net settle the contracts through the delivery or receipt of cash or shares. CMS Energy may settle the contracts at any time through their maturity dates, and presently intends to physically settle the contracts by delivering shares of its common stock. The initial forward price in the forward equity sale contracts includes a deduction for commissions and will be adjusted on a daily basis over the term based on an interest rate factor and decreased on certain dates by certain predetermined amounts to reflect expected dividend payments. No amounts have or will be recorded on CMS Energy’s consolidated balance sheets until settlements of the forward equity sale contracts occur. If CMS Energy had elected to net share settle the contracts as of June 30, 2019 , CMS Energy would have been required to deliver 621,923 shares. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market‑based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets 1 Cash equivalents $ 18 $ 27 $ — $ — Restricted cash equivalents 22 21 16 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 16 14 12 10 DB SERP cash equivalents — 1 — — Derivative instruments 2 1 2 1 Total $ 58 $ 64 $ 31 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 16 $ 14 $ 12 $ 10 Derivative instruments 11 3 1 — Total $ 27 $ 17 $ 13 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. DB SERP Cash Equivalents: The DB SERP cash equivalents consist of a money market fund with daily liquidity and are reported in other non‑current assets on CMS Energy and Consumers’ consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market‑based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank. Certain interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $95 million at June 30, 2019 . Gains or losses on these swaps are initially reported in other comprehensive income and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. CMS Energy recorded in other comprehensive income a $3 million loss for the three months ended June 30, 2019 and a $4 million loss for the six months ended June 30, 2019 . There were no material impacts on other interest expense associated with these swaps for the three and six months ended June 30, 2019 . The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $6 million at June 30, 2019 and $3 million at December 31, 2018 . CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material. The interest rate swaps at EnerBank qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $61 million at June 30, 2019 . The fair value of these interest rate swaps recorded in other liabilities was $1 million at June 30, 2019 . CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income. There were no material amounts recognized in operating revenue associated with these swaps for the three months ended June 30, 2019 and six months ended June 30, 2019 . The majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion‑related transmission charges. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. When measuring fair value, CMS Energy and Consumers are required to incorporate all assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. A fair value hierarchy prioritizes inputs used to measure fair value according to their observability in the market. The three levels of the fair value hierarchy are as follows: • Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are observable, market‑based inputs, other than Level 1 prices. Level 2 inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in inactive markets, and inputs derived from or corroborated by observable market data. • Level 3 inputs are unobservable inputs that reflect CMS Energy’s or Consumers’ own assumptions about how market participants would value their assets and liabilities. CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets 1 Cash equivalents $ 18 $ 27 $ — $ — Restricted cash equivalents 22 21 16 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 16 14 12 10 DB SERP cash equivalents — 1 — — Derivative instruments 2 1 2 1 Total $ 58 $ 64 $ 31 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 16 $ 14 $ 12 $ 10 Derivative instruments 11 3 1 — Total $ 27 $ 17 $ 13 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity. Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values. CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections. CMS Energy and Consumers report the assets in other non‑current assets and the liabilities in other non‑current liabilities on their consolidated balance sheets. DB SERP Cash Equivalents: The DB SERP cash equivalents consist of a money market fund with daily liquidity and are reported in other non‑current assets on CMS Energy and Consumers’ consolidated balance sheets. Derivative Instruments: CMS Energy and Consumers value their derivative instruments using either a market approach that incorporates information from market transactions, or an income approach that discounts future expected cash flows to a present value amount. CMS Energy’s and Consumers’ derivatives are classified as Level 2 or Level 3. The derivatives classified as Level 2 are interest rate swaps at CMS Energy, which are valued using market‑based inputs. CMS Energy uses interest rate swaps to manage its interest rate risk on certain long‑term debt obligations and certain notes receivable at EnerBank. Certain interest rate swaps are accounted for as cash flow hedges of the future variability of interest payments on debt with a notional amount of $95 million at June 30, 2019 . Gains or losses on these swaps are initially reported in other comprehensive income and then, as interest payments are made on the hedged debt, are recognized in earnings within other interest expense on CMS Energy’s consolidated statements of income. CMS Energy recorded in other comprehensive income a $3 million loss for the three months ended June 30, 2019 and a $4 million loss for the six months ended June 30, 2019 . There were no material impacts on other interest expense associated with these swaps for the three and six months ended June 30, 2019 . The fair value of these swaps recorded in other liabilities on CMS Energy’s consolidated balance sheets totaled $6 million at June 30, 2019 and $3 million at December 31, 2018 . CMS Energy also has other interest rate swaps that economically hedge interest rate risk on debt, but that do not qualify for cash flow hedge accounting; the amounts associated with these swaps were not material. The interest rate swaps at EnerBank qualify as fair value hedges of long‑term, fixed‑rate notes receivable with a notional amount of $61 million at June 30, 2019 . The fair value of these interest rate swaps recorded in other liabilities was $1 million at June 30, 2019 . CMS Energy is adjusting the carrying value of the hedged notes receivable for the change in their fair value due to the hedged risk. Both gains and losses on the swaps and the changes to the carrying value of the hedged notes receivable are recorded within operating revenue on CMS Energy’s consolidated statements of income. There were no material amounts recognized in operating revenue associated with these swaps for the three months ended June 30, 2019 and six months ended June 30, 2019 . The majority of derivatives classified as Level 3 are FTRs held by Consumers. Consumers uses FTRs to manage price risk related to electricity transmission congestion. An FTR is a financial instrument that entitles its holder to receive compensation or requires its holder to remit payment for congestion‑related transmission charges. Due to the lack of quoted pricing information, Consumers determines the fair value of its FTRs based on Consumers’ average historical settlements. There was no material activity within the Level 3 categories of assets and liabilities during the periods presented. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,231 2,359 — — 2,359 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 12,292 13,112 1,177 10,053 1,882 11,589 11,630 459 9,404 1,767 Long-term payables 4 28 29 — — 29 27 27 — — 27 Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 105 105 — — 105 106 106 — — 106 Liabilities Long‑term debt 6 6,572 7,102 — 5,220 1,882 6,805 6,833 — 5,066 1,767 1 Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018 . 2 Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2019 and December 31, 2018 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018 . The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2019 and December 31, 2018 . The entirety of these amounts was at Consumers. Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities: In Millions June 30, 2019 December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 26 $ — $ — $ 26 $ 22 $ — $ 1 $ 21 |
Consumers Energy Company | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Financial Instruments | Financial Instruments Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,231 2,359 — — 2,359 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 12,292 13,112 1,177 10,053 1,882 11,589 11,630 459 9,404 1,767 Long-term payables 4 28 29 — — 29 27 27 — — 27 Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 105 105 — — 105 106 106 — — 106 Liabilities Long‑term debt 6 6,572 7,102 — 5,220 1,882 6,805 6,833 — 5,066 1,767 1 Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018 . 2 Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2019 and December 31, 2018 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018 . The effects of third‑party credit enhancements were excluded from the fair value measurements of long‑term debt. The principal amount of CMS Energy’s long‑term debt supported by third‑party credit enhancements was $35 million at June 30, 2019 and December 31, 2018 . The entirety of these amounts was at Consumers. Debt securities classified as held to maturity consisted primarily of mortgage‑backed securities and Utah Housing Corporation bonds held by EnerBank. Presented in the following table are these investment securities: In Millions June 30, 2019 December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 26 $ — $ — $ 26 $ 22 $ — $ 1 $ 21 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes Receivable | Notes Receivable Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 249 $ 233 Non‑current EnerBank notes receivable 1,982 1,624 Total notes receivable $ 2,231 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 98 99 Total notes receivable $ 105 $ 106 EnerBank Notes Receivable EnerBank notes receivable are primarily unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses. During the six months ended June 30, 2019 , EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $238 million . Authorized contractors pay fees to EnerBank to provide borrowers with same‑as‑cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $122 million at June 30, 2019 and $102 million at December 31, 2018 . The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $24 million at June 30, 2019 and $21 million at December 31, 2018 . At June 30, 2019 and December 31, 2018 , EnerBank’s loans that had been modified as troubled debt restructurings were immaterial. EnerBank has entered into interest rate swaps on $61 million of its loans (notes receivable). For information about interest rate swaps see Note 5, Fair Value Measurements . DB SERP Note Receivable – Related Party The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent |
Consumers Energy Company | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Notes Receivable | Notes Receivable Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 249 $ 233 Non‑current EnerBank notes receivable 1,982 1,624 Total notes receivable $ 2,231 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 98 99 Total notes receivable $ 105 $ 106 EnerBank Notes Receivable EnerBank notes receivable are primarily unsecured consumer installment loans for financing home improvements. EnerBank records its notes receivable at cost, less an allowance for loan losses. During the six months ended June 30, 2019 , EnerBank purchased a portfolio of secured and unsecured consumer installment loans with a principal value of $238 million . Authorized contractors pay fees to EnerBank to provide borrowers with same‑as‑cash, zero interest, or reduced interest loans. Unearned income associated with the loan fees, which is recorded as a reduction to notes receivable on CMS Energy’s consolidated balance sheets, was $122 million at June 30, 2019 and $102 million at December 31, 2018 . The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. Loans that are 30 days or more past due are considered delinquent. The balance of EnerBank’s delinquent consumer loans was $24 million at June 30, 2019 and $21 million at December 31, 2018 . At June 30, 2019 and December 31, 2018 , EnerBank’s loans that had been modified as troubled debt restructurings were immaterial. EnerBank has entered into interest rate swaps on $61 million of its loans (notes receivable). For information about interest rate swaps see Note 5, Fair Value Measurements . DB SERP Note Receivable – Related Party The DB SERP note receivable – related party is Consumers’ portion of a demand note payable issued by CMS Energy to the DB SERP rabbi trust. The demand note bears interest at an annual rate of 4.10 percent |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Line Items] | |
Leases | Leases Lessee CMS Energy and Consumers lease various assets from third parties, including railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for a number of their PPAs as finance and operating leases. CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and fleet vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term. Consumers includes future payments for all renewal options that it is reasonably certain to exercise in its measurement of lease right-of-use assets and lease liabilities. CMS Energy and Consumers include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their railcar leases. Operating leases for coal-carrying railcars have original lease terms ranging from five to 15 years , expiring over the next four years with options to renew. These leases contain fair market value extension and buyout provisions. Operating leases for real estate have original lease terms ranging from three to 60 years , expiring over the next 42 years . These leases contain fair market value extension and buyout provisions. Finance leases for Consumers’ service vehicles have original lease terms ranging from five to ten years , expiring over the next seven years . Some have end-of-lease rental adjustment clauses based on proceeds received from the sale or disposition of the vehicles, and others have fair market value purchase options. Consumers has finance leases for gas transportation pipelines to the D.E. Karn generating complex and Zeeland. The finance lease for the gas transportation pipeline into the D.E. Karn generating complex has a term of 15 years with a provision to extend the contract from month to month. The remaining term of the contract was three years at June 30, 2019 . The finance lease for the gas transportation pipeline to Zeeland was extended in 2017 for five years pursuant to a renewal provision in the contract, with additional renewal provisions of five to ten years . The remaining terms of Consumers’ long-term PPAs accounted for as finance and operating leases range between one and 14 years . Most of these PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a lease. Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted June 30, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 51 $ 44 Lease liabilities Current lease liabilities 2 10 8 Non-current lease liabilities 3 41 35 Finance leases Right-of-use assets $ 76 $ 76 Lease liabilities 4 Current lease liabilities 7 7 Non-current lease liabilities 63 63 Weighted-average remaining lease term (in years) Operating leases 16 13 Finance leases 12 12 Weighted-average discount rate Operating leases 3.7 % 3.7 % Finance leases 5 2.0 % 2.0 % 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions CMS Energy, including Consumers Consumers June 30, 2019 Three Months Ended Six Months Ended Three Months Ended Six Months Ended Operating lease costs $ 3 $ 6 $ 3 $ 5 Finance lease costs Amortization of right-of-use assets 2 4 2 4 Interest on lease liabilities 5 9 5 9 Variable lease costs 24 55 24 55 Total lease costs $ 34 $ 74 $ 34 $ 73 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Six Months Ended June 30, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 5 $ 5 Cash used in operating activities for finance leases 9 9 Cash used in financing activities for finance leases 3 3 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases June 30, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 11 17 6 23 2021 11 17 5 22 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 79 11 90 Total minimum lease payments $ 72 $ 162 $ 40 $ 202 Less discount 21 128 4 132 Present value of minimum lease payments $ 51 $ 34 $ 36 $ 70 Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 9 17 6 23 2021 9 17 5 22 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 28 79 11 90 Total minimum lease payments $ 60 $ 162 $ 40 $ 202 Less discount 17 128 4 132 Present value of minimum lease payments $ 43 $ 34 $ 36 $ 70 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02: In Millions December 31, 2018 Capital Leases Operating Leases CMS Energy, including Consumers 2019 $ 14 $ 16 2020 11 15 2021 11 15 2022 8 8 2023 6 5 2024 and thereafter 21 38 Total minimum lease payments $ 71 $ 97 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Consumers 2019 $ 14 $ 14 2020 11 14 2021 11 13 2022 8 7 2023 6 5 2024 21 32 Total minimum lease payments $ 71 $ 85 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Lessor CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases. CMS Energy has power sales agreements that are accounted for as operating leases. These agreements have remaining terms ranging from three to 24 years . In addition to fixed payments, these agreements have variable payments based on energy delivered. For the three months ended June 30, 2019 , CMS Energy’s lease revenue from its power sales agreements was $42 million , which included variable lease payments of $29 million . For the six months ended June 30, 2019 , CMS Energy’s lease revenue from its power sales agreements was $90 million , which included variable lease payments of $63 million . Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station for a term of 20 years , which began in December 2018. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation. In December 2018, Consumers and a subsidiary of CMS Energy executed a 20 ‑year natural gas transportation agreement, related to a pipeline owned by Consumers, which will automatically extend annually unless terminated by either party. This agreement is accounted for by Consumers as a direct finance lease. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements. Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases: In Millions June 30, 2019 Remainder of 2019 $ 28 2020 54 2021 54 2022 48 2023 44 2024 44 2025 and thereafter 62 Total minimum lease payments $ 334 Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases: In Millions June 30, 2019 CMS Energy, including Consumers Consumers Remainder of 2019 $ — $ 1 2020 — 1 2021 — 1 2022 — 1 2023 — 1 2024 — 1 2025 and thereafter 10 19 Total minimum lease payments $ 10 $ 25 Less unearned income 5 15 Present value of lease payments recognized as lease receivables $ 5 $ 10 |
Consumers Energy Company | |
Leases [Line Items] | |
Leases | Leases Lessee CMS Energy and Consumers lease various assets from third parties, including railcars, real estate, service vehicles, and gas pipeline capacity. In addition, CMS Energy and Consumers account for a number of their PPAs as finance and operating leases. CMS Energy and Consumers do not record right-of-use assets or lease liabilities on their balance sheets for rentals with lease terms of 12 months or less, most of which are for the lease of real estate and fleet vehicles. Lease expense for these rentals is recognized on a straight-line basis over the lease term. Consumers includes future payments for all renewal options that it is reasonably certain to exercise in its measurement of lease right-of-use assets and lease liabilities. CMS Energy and Consumers include executory costs in the measurement of their right-of-use assets and lease liabilities, except for maintenance costs related to their railcar leases. Operating leases for coal-carrying railcars have original lease terms ranging from five to 15 years , expiring over the next four years with options to renew. These leases contain fair market value extension and buyout provisions. Operating leases for real estate have original lease terms ranging from three to 60 years , expiring over the next 42 years . These leases contain fair market value extension and buyout provisions. Finance leases for Consumers’ service vehicles have original lease terms ranging from five to ten years , expiring over the next seven years . Some have end-of-lease rental adjustment clauses based on proceeds received from the sale or disposition of the vehicles, and others have fair market value purchase options. Consumers has finance leases for gas transportation pipelines to the D.E. Karn generating complex and Zeeland. The finance lease for the gas transportation pipeline into the D.E. Karn generating complex has a term of 15 years with a provision to extend the contract from month to month. The remaining term of the contract was three years at June 30, 2019 . The finance lease for the gas transportation pipeline to Zeeland was extended in 2017 for five years pursuant to a renewal provision in the contract, with additional renewal provisions of five to ten years . The remaining terms of Consumers’ long-term PPAs accounted for as finance and operating leases range between one and 14 years . Most of these PPAs contain provisions at the end of the initial contract terms to renew the agreements annually under mutually agreed‑upon terms at the time of renewal. Energy and capacity payments that vary depending on quantities delivered are recognized as variable lease costs when incurred. Consumers accounts for a PPA with one of CMS Energy’s equity method subsidiaries as a lease. Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted June 30, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 51 $ 44 Lease liabilities Current lease liabilities 2 10 8 Non-current lease liabilities 3 41 35 Finance leases Right-of-use assets $ 76 $ 76 Lease liabilities 4 Current lease liabilities 7 7 Non-current lease liabilities 63 63 Weighted-average remaining lease term (in years) Operating leases 16 13 Finance leases 12 12 Weighted-average discount rate Operating leases 3.7 % 3.7 % Finance leases 5 2.0 % 2.0 % 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. CMS Energy and Consumers report operating, variable, and short-term lease costs as operating expenses on their consolidated statements of income, except for certain amounts that may be capitalized to other assets. Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions CMS Energy, including Consumers Consumers June 30, 2019 Three Months Ended Six Months Ended Three Months Ended Six Months Ended Operating lease costs $ 3 $ 6 $ 3 $ 5 Finance lease costs Amortization of right-of-use assets 2 4 2 4 Interest on lease liabilities 5 9 5 9 Variable lease costs 24 55 24 55 Total lease costs $ 34 $ 74 $ 34 $ 73 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Six Months Ended June 30, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 5 $ 5 Cash used in operating activities for finance leases 9 9 Cash used in financing activities for finance leases 3 3 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases June 30, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 11 17 6 23 2021 11 17 5 22 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 79 11 90 Total minimum lease payments $ 72 $ 162 $ 40 $ 202 Less discount 21 128 4 132 Present value of minimum lease payments $ 51 $ 34 $ 36 $ 70 Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 9 17 6 23 2021 9 17 5 22 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 28 79 11 90 Total minimum lease payments $ 60 $ 162 $ 40 $ 202 Less discount 17 128 4 132 Present value of minimum lease payments $ 43 $ 34 $ 36 $ 70 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02: In Millions December 31, 2018 Capital Leases Operating Leases CMS Energy, including Consumers 2019 $ 14 $ 16 2020 11 15 2021 11 15 2022 8 8 2023 6 5 2024 and thereafter 21 38 Total minimum lease payments $ 71 $ 97 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Consumers 2019 $ 14 $ 14 2020 11 14 2021 11 13 2022 8 7 2023 6 5 2024 21 32 Total minimum lease payments $ 71 $ 85 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Lessor CMS Energy and Consumers are the lessor under power sales and natural gas delivery agreements that are accounted for as leases. CMS Energy has power sales agreements that are accounted for as operating leases. These agreements have remaining terms ranging from three to 24 years . In addition to fixed payments, these agreements have variable payments based on energy delivered. For the three months ended June 30, 2019 , CMS Energy’s lease revenue from its power sales agreements was $42 million , which included variable lease payments of $29 million . For the six months ended June 30, 2019 , CMS Energy’s lease revenue from its power sales agreements was $90 million , which included variable lease payments of $63 million . Consumers has an agreement to build, own, operate, and maintain a compressed natural gas fueling station for a term of 20 years , which began in December 2018. This agreement is accounted for as a direct finance lease, under which the lessee has the option to purchase the natural gas fueling station at the end of the lease term. Fixed monthly payments escalate annually with inflation. In December 2018, Consumers and a subsidiary of CMS Energy executed a 20 ‑year natural gas transportation agreement, related to a pipeline owned by Consumers, which will automatically extend annually unless terminated by either party. This agreement is accounted for by Consumers as a direct finance lease. The effects of the lease are eliminated on CMS Energy’s consolidated financial statements. Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases: In Millions June 30, 2019 Remainder of 2019 $ 28 2020 54 2021 54 2022 48 2023 44 2024 44 2025 and thereafter 62 Total minimum lease payments $ 334 Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases: In Millions June 30, 2019 CMS Energy, including Consumers Consumers Remainder of 2019 $ — $ 1 2020 — 1 2021 — 1 2022 — 1 2023 — 1 2024 — 1 2025 and thereafter 10 19 Total minimum lease payments $ 10 $ 25 Less unearned income 5 15 Present value of lease payments recognized as lease receivables $ 5 $ 10 |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 20 $ 24 $ 3 $ 5 $ 7 $ 9 Interest cost 24 23 49 45 10 9 20 18 Expected return on plan assets (41 ) (37 ) (81 ) (74 ) (22 ) (25 ) (44 ) (49 ) Amortization of: Net loss 12 19 24 37 6 4 13 8 Prior service cost (credit) 1 — 1 1 (15 ) (17 ) (31 ) (34 ) Net periodic cost (credit) $ 6 $ 17 $ 13 $ 33 $ (18 ) $ (24 ) $ (35 ) $ (48 ) Consumers Net periodic cost (credit) Service cost $ 10 $ 11 $ 20 $ 23 $ 4 $ 4 $ 7 $ 8 Interest cost 23 21 46 42 10 9 20 17 Expected return on plan assets (38 ) (34 ) (76 ) (69 ) (20 ) (23 ) (41 ) (46 ) Amortization of: Net loss 11 18 23 36 6 4 13 8 Prior service cost (credit) 1 — 1 1 (16 ) (16 ) (31 ) (32 ) Net periodic cost (credit) $ 7 $ 16 $ 14 $ 33 $ (16 ) $ (22 ) $ (32 ) $ (45 ) |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefits | Retirement Benefits CMS Energy and Consumers provide pension, OPEB, and other retirement benefits to employees under a number of different plans. Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 20 $ 24 $ 3 $ 5 $ 7 $ 9 Interest cost 24 23 49 45 10 9 20 18 Expected return on plan assets (41 ) (37 ) (81 ) (74 ) (22 ) (25 ) (44 ) (49 ) Amortization of: Net loss 12 19 24 37 6 4 13 8 Prior service cost (credit) 1 — 1 1 (15 ) (17 ) (31 ) (34 ) Net periodic cost (credit) $ 6 $ 17 $ 13 $ 33 $ (18 ) $ (24 ) $ (35 ) $ (48 ) Consumers Net periodic cost (credit) Service cost $ 10 $ 11 $ 20 $ 23 $ 4 $ 4 $ 7 $ 8 Interest cost 23 21 46 42 10 9 20 17 Expected return on plan assets (38 ) (34 ) (76 ) (69 ) (20 ) (23 ) (41 ) (46 ) Amortization of: Net loss 11 18 23 36 6 4 13 8 Prior service cost (credit) 1 — 1 1 (16 ) (16 ) (31 ) (32 ) Net periodic cost (credit) $ 7 $ 16 $ 14 $ 33 $ (16 ) $ (22 ) $ (32 ) $ (45 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2019 2018 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.4 5.6 TCJA excess deferred taxes 1 (3.5 ) (3.4 ) Production tax credits (2.5 ) (1.7 ) Accelerated flow-through of regulatory tax benefits 2 (1.5 ) (5.0 ) Research and development tax credits, net 3 (0.2 ) (2.2 ) Other, net (0.6 ) 0.3 Effective tax rate 18.1 % 14.6 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.7 5.8 TCJA excess deferred taxes 1 (3.2 ) (3.2 ) Accelerated flow-through of regulatory tax benefits 2 (1.8 ) (4.7 ) Production tax credits (1.3 ) (1.5 ) Research and development tax credits, net 3 (0.2 ) (2.1 ) Other, net (0.4 ) — Effective tax rate 19.8 % 15.3 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019 , this reserve for refund of these excess deferred taxes totaled $53 million . 2 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018 . 3 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2019 2018 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.4 5.6 TCJA excess deferred taxes 1 (3.5 ) (3.4 ) Production tax credits (2.5 ) (1.7 ) Accelerated flow-through of regulatory tax benefits 2 (1.5 ) (5.0 ) Research and development tax credits, net 3 (0.2 ) (2.2 ) Other, net (0.6 ) 0.3 Effective tax rate 18.1 % 14.6 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.7 5.8 TCJA excess deferred taxes 1 (3.2 ) (3.2 ) Accelerated flow-through of regulatory tax benefits 2 (1.8 ) (4.7 ) Production tax credits (1.3 ) (1.5 ) Research and development tax credits, net 3 (0.2 ) (2.1 ) Other, net (0.4 ) — Effective tax rate 19.8 % 15.3 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019 , this reserve for refund of these excess deferred taxes totaled $53 million . 2 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018 . 3 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. |
Earnings Per Share - CMS Energy
Earnings Per Share - CMS Energy | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share - CMS Energy | Earnings Per Share—CMS Energy Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income: In Millions, Except Per Share Amounts Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 Income available to common stockholders Net income $ 94 $ 140 $ 307 $ 381 Less income attributable to noncontrolling interests 1 1 1 1 Net income available to common stockholders – basic and diluted $ 93 $ 139 $ 306 $ 380 Average common shares outstanding Weighted-average shares – basic 282.9 282.1 282.9 281.8 Add dilutive nonvested stock awards 0.6 0.5 0.6 0.6 Add dilutive forward equity sale contracts 0.5 — 0.3 — Weighted-average shares – diluted 284.0 282.6 283.8 282.4 Net income per average common share available to common stockholders Basic $ 0.33 $ 0.49 $ 1.08 $ 1.35 Diluted 0.33 0.49 1.08 1.35 Nonvested Stock Awards CMS Energy’s nonvested stock awards are composed of participating and non‑participating securities. The participating securities accrue cash dividends when common stockholders receive dividends. Since the recipient is not required to return the dividends to CMS Energy if the recipient forfeits the award, the nonvested stock awards are considered participating securities. As such, the participating nonvested stock awards were included in the computation of basic EPS. The non‑participating securities accrue stock dividends that vest concurrently with the stock award. If the recipient forfeits the award, the stock dividends accrued on the non‑participating securities are also forfeited. Accordingly, the non‑participating awards and stock dividends were included in the computation of diluted EPS, but not in the computation of basic EPS. Forward Equity Sale Contracts In November 2018 and February 2019, CMS Energy entered into forward equity sale contracts. These forward equity sale contracts are non‑participating securities. While the forward sale price in the forward equity sale contract is decreased on certain dates by certain predetermined amounts to reflect expected dividend payments, these price adjustments were set upon inception of the agreement and the forward contract does not give the owner the right to participate in undistributed earnings. Accordingly, the forward equity sale contracts were included in the computation of diluted EPS, but not in the computation of basic EPS. For further details on the forward equity sale contracts, see Note 4, Financings and Capitalization . |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ — $ — $ 621 Commercial 362 58 — — 420 Industrial 174 8 — — 182 Other 67 41 — — 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ — $ — $ 1,331 Financing income 1 2 — — 3 Total operating revenue – Consumers $ 1,027 $ 307 $ — $ — $ 1,334 In Millions Three Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,087 $ 302 $ — $ — $ 1,389 Other — — 24 — 24 Revenue recognized from contracts with customers $ 1,087 $ 302 $ 24 $ — $ 1,413 Leasing income — — 37 — 37 Financing income 2 2 — 36 40 Consumers alternative revenue programs — 2 — — 2 Total operating revenue – CMS Energy $ 1,089 $ 306 $ 61 $ 36 $ 1,492 Consumers Consumers utility revenue Residential $ 475 $ 194 $ — $ — $ 669 Commercial 386 58 — — 444 Industrial 170 9 — — 179 Other 56 41 — — 97 Revenue recognized from contracts with customers $ 1,087 $ 302 $ — $ — $ 1,389 Financing income 2 2 — — 4 Alternative revenue programs — 2 — — 2 Total operating revenue – Consumers $ 1,089 $ 306 $ — $ — $ 1,395 In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ — $ — $ 1,733 Commercial 713 232 — — 945 Industrial 336 33 — — 369 Other 131 91 — — 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ — $ — $ 3,269 Financing income 4 4 — — 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ — $ — $ 3,277 In Millions Six Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,163 $ 1,075 $ — $ — $ 3,238 Other — — 48 — 48 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ 48 $ — $ 3,286 Leasing income — — 76 — 76 Financing income 4 4 — 71 79 Consumers alternative revenue programs — 4 — — 4 Total operating revenue – CMS Energy $ 2,167 $ 1,083 $ 124 $ 71 $ 3,445 Consumers Consumers utility revenue Residential $ 976 $ 731 $ — $ — $ 1,707 Commercial 747 220 — — 967 Industrial 313 33 — — 346 Other 127 91 — — 218 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ — $ — $ 3,238 Financing income 4 4 — — 8 Alternative revenue programs — 4 — — 4 Total operating revenue – Consumers $ 2,167 $ 1,083 $ — $ — $ 3,250 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. 2 Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements . Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff‑based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff‑based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed‑term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past‑due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $6 million for the three months ended June 30, 2019 and $7 million for the three months ended June 30, 2018 . Uncollectible expense for CMS Energy and Consumers was $12 million for the six months ended June 30, 2019 and $14 million for the six months ended June 30, 2018 . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month‑end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $257 million at June 30, 2019 and $409 million at December 31, 2018 . Alternative‑Revenue Programs: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Consumers Energy Company | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue | Revenue Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ — $ — $ 621 Commercial 362 58 — — 420 Industrial 174 8 — — 182 Other 67 41 — — 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ — $ — $ 1,331 Financing income 1 2 — — 3 Total operating revenue – Consumers $ 1,027 $ 307 $ — $ — $ 1,334 In Millions Three Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,087 $ 302 $ — $ — $ 1,389 Other — — 24 — 24 Revenue recognized from contracts with customers $ 1,087 $ 302 $ 24 $ — $ 1,413 Leasing income — — 37 — 37 Financing income 2 2 — 36 40 Consumers alternative revenue programs — 2 — — 2 Total operating revenue – CMS Energy $ 1,089 $ 306 $ 61 $ 36 $ 1,492 Consumers Consumers utility revenue Residential $ 475 $ 194 $ — $ — $ 669 Commercial 386 58 — — 444 Industrial 170 9 — — 179 Other 56 41 — — 97 Revenue recognized from contracts with customers $ 1,087 $ 302 $ — $ — $ 1,389 Financing income 2 2 — — 4 Alternative revenue programs — 2 — — 2 Total operating revenue – Consumers $ 1,089 $ 306 $ — $ — $ 1,395 In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ — $ — $ 1,733 Commercial 713 232 — — 945 Industrial 336 33 — — 369 Other 131 91 — — 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ — $ — $ 3,269 Financing income 4 4 — — 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ — $ — $ 3,277 In Millions Six Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,163 $ 1,075 $ — $ — $ 3,238 Other — — 48 — 48 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ 48 $ — $ 3,286 Leasing income — — 76 — 76 Financing income 4 4 — 71 79 Consumers alternative revenue programs — 4 — — 4 Total operating revenue – CMS Energy $ 2,167 $ 1,083 $ 124 $ 71 $ 3,445 Consumers Consumers utility revenue Residential $ 976 $ 731 $ — $ — $ 1,707 Commercial 747 220 — — 967 Industrial 313 33 — — 346 Other 127 91 — — 218 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ — $ — $ 3,238 Financing income 4 4 — — 8 Alternative revenue programs — 4 — — 4 Total operating revenue – Consumers $ 2,167 $ 1,083 $ — $ — $ 3,250 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. 2 Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements . Electric and Gas Utilities Consumers Utility Revenue: Consumers recognizes revenue primarily from the sale of electric and gas utility services at tariff‑based rates regulated by the MPSC. Consumers’ customer base consists of a mix of residential, commercial, and diversified industrial customers. Consumers’ tariff‑based sales performance obligations are described below. • Consumers has performance obligations for the service of standing ready to deliver electricity or natural gas to customers, and it satisfies these performance obligations over time. Consumers recognizes revenue at a fixed rate as it provides these services. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of Consumers’ service to stand ready to deliver. • Consumers has performance obligations for the service of delivering the commodity of electricity or natural gas to customers, and it satisfies these performance obligations upon delivery. Consumers recognizes revenue at a price per unit of electricity or natural gas delivered, based on the tariffs established by the MPSC. These arrangements generally do not have fixed terms and remain in effect as long as the customer consumes the utility service. The rates are set by the MPSC through the rate‑making process and represent the stand‑alone selling price of a bundled product comprising the commodity, electricity or natural gas, and the service of delivering such commodity. In some instances, Consumers has specific fixed‑term contracts with large commercial and industrial customers to provide electricity or gas at certain tariff rates or to provide gas transportation services at contracted rates. The amount of electricity and gas to be delivered under these contracts and the associated future revenue to be received are generally dependent on the customers’ needs. Accordingly, Consumers recognizes revenues at the tariff or contracted rate as electricity or gas is delivered to the customer. Consumers also has other miscellaneous contracts with customers related to pole and other property rentals, appliance service plans, and utility contract work. Generally, these contracts are short term or evergreen in nature. Accounts Receivable and Unbilled Revenues: Accounts receivable comprise trade receivables and unbilled receivables. CMS Energy and Consumers record their accounts receivable at cost, which approximates fair value. CMS Energy and Consumers establish an allowance for uncollectible accounts based on historical losses, management’s assessment of existing economic conditions, customer payment trends, and other factors. CMS Energy and Consumers assess late payment fees on trade receivables based on contractual past‑due terms established with customers. CMS Energy and Consumers charge off accounts deemed uncollectible to operating expense. Uncollectible expense for CMS Energy and Consumers was $6 million for the three months ended June 30, 2019 and $7 million for the three months ended June 30, 2018 . Uncollectible expense for CMS Energy and Consumers was $12 million for the six months ended June 30, 2019 and $14 million for the six months ended June 30, 2018 . Consumers’ customers are billed monthly in cycles having billing dates that do not generally coincide with the end of a calendar month. This results in customers having received electricity or natural gas that they have not been billed for as of the month‑end. Consumers estimates its unbilled revenues by applying an average billed rate to total unbilled deliveries for each customer class. Unbilled revenues, which are recorded as accounts receivable on CMS Energy’s and Consumers’ consolidated balance sheets, were $257 million at June 30, 2019 and $409 million at December 31, 2018 . Alternative‑Revenue Programs: Under a gas revenue decoupling mechanism authorized by the MPSC, Consumers is allowed to adjust future gas rates for differences between Consumers’ actual weather‑normalized, non‑fuel revenues and the revenues approved by the MPSC. Consumers accounts for this program as an alternative‑revenue program that meets the criteria for recognizing the effects of decoupling adjustments on revenue as gas is delivered. Consumers does not reclassify revenue from its alternative-revenue program to revenue from contracts with customers at the time the amounts are collected from customers. |
Cash And Cash Equivalents
Cash And Cash Equivalents | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Line Items] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Cash and cash equivalents $ 312 $ 153 Restricted cash and cash equivalents 22 21 Other non-current assets — 1 Cash and cash equivalents, including restricted amounts $ 334 $ 175 Consumers Cash and cash equivalents $ 196 $ 39 Restricted cash and cash equivalents 16 17 Cash and cash equivalents, including restricted amounts $ 212 $ 56 Cash and Cash Equivalents: Cash and cash equivalents include short‑term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. Other Non‑current Assets: The cash equivalents classified as other non‑current assets represent an investment in a money market fund held in the DB SERP rabbi trust. See Note 5, Fair Value Measurements for more information regarding the DB SERP. |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Cash And Cash Equivalents | Cash and Cash Equivalents Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Cash and cash equivalents $ 312 $ 153 Restricted cash and cash equivalents 22 21 Other non-current assets — 1 Cash and cash equivalents, including restricted amounts $ 334 $ 175 Consumers Cash and cash equivalents $ 196 $ 39 Restricted cash and cash equivalents 16 17 Cash and cash equivalents, including restricted amounts $ 212 $ 56 Cash and Cash Equivalents: Cash and cash equivalents include short‑term, highly liquid investments with original maturities of three months or less. Restricted Cash and Cash Equivalents: Restricted cash and cash equivalents are held primarily for the repayment of securitization bonds and funds held in escrow. Cash and cash equivalents may also be restricted to pay other contractual obligations such as leasing of coal railcars. These amounts are classified as current assets since they relate to payments that could or will occur within one year. Other Non‑current Assets: The cash equivalents classified as other non‑current assets represent an investment in a money market fund held in the DB SERP rabbi trust. See Note 5, Fair Value Measurements for more information regarding the DB SERP. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable Segments Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The reportable segments for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production CMS Energy presents EnerBank, corporate interest and other expenses, and Consumers’ other consolidated entities within other reconciling items. Consumers The reportable segments for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 CMS Energy, including Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Enterprises 58 61 125 124 Other reconciling items 53 36 102 71 Total operating revenue – CMS Energy $ 1,445 $ 1,492 $ 3,504 $ 3,445 Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Total operating revenue – Consumers $ 1,334 $ 1,395 $ 3,277 $ 3,250 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Enterprises 10 14 11 29 Other reconciling items (15 ) (26 ) (29 ) (42 ) Total net income available to common stockholders – CMS Energy $ 93 $ 139 $ 306 $ 380 Consumers Net income (loss) available to common stockholder Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Other reconciling items (1 ) — (1 ) — Total net income available to common stockholder – Consumers $ 97 $ 151 $ 323 $ 393 In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Enterprises 405 412 Other reconciling items 44 42 Total plant, property, and equipment, gross – CMS Energy $ 24,263 $ 24,400 Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Other reconciling items 19 17 Total plant, property, and equipment, gross – Consumers $ 23,833 $ 23,963 CMS Energy, including Consumers Total assets Electric utility 1 $ 14,396 $ 14,079 Gas utility 1 7,890 7,806 Enterprises 522 540 Other reconciling items 2,484 2,104 Total assets – CMS Energy $ 25,292 $ 24,529 Consumers Total assets Electric utility 1 $ 14,459 $ 14,143 Gas utility 1 7,937 7,853 Other reconciling items 20 29 Total assets – Consumers $ 22,416 $ 22,025 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters . |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Reportable Segments | Reportable Segments Reportable segments consist of business units defined by the products and services they offer. CMS Energy and Consumers evaluate the performance of each segment based on its contribution to net income available to CMS Energy’s common stockholders. CMS Energy The reportable segments for CMS Energy are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan • enterprises, consisting of various subsidiaries engaging in domestic independent power production, including the development and operation of renewable generation, and the marketing of independent power production CMS Energy presents EnerBank, corporate interest and other expenses, and Consumers’ other consolidated entities within other reconciling items. Consumers The reportable segments for Consumers are: • electric utility, consisting of regulated activities associated with the generation, purchase, transmission, distribution, and sale of electricity in Michigan • gas utility, consisting of regulated activities associated with the purchase, transmission, storage, distribution, and sale of natural gas in Michigan Consumers’ other consolidated entities are presented within other reconciling items. Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 CMS Energy, including Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Enterprises 58 61 125 124 Other reconciling items 53 36 102 71 Total operating revenue – CMS Energy $ 1,445 $ 1,492 $ 3,504 $ 3,445 Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Total operating revenue – Consumers $ 1,334 $ 1,395 $ 3,277 $ 3,250 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Enterprises 10 14 11 29 Other reconciling items (15 ) (26 ) (29 ) (42 ) Total net income available to common stockholders – CMS Energy $ 93 $ 139 $ 306 $ 380 Consumers Net income (loss) available to common stockholder Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Other reconciling items (1 ) — (1 ) — Total net income available to common stockholder – Consumers $ 97 $ 151 $ 323 $ 393 In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Enterprises 405 412 Other reconciling items 44 42 Total plant, property, and equipment, gross – CMS Energy $ 24,263 $ 24,400 Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Other reconciling items 19 17 Total plant, property, and equipment, gross – Consumers $ 23,833 $ 23,963 CMS Energy, including Consumers Total assets Electric utility 1 $ 14,396 $ 14,079 Gas utility 1 7,890 7,806 Enterprises 522 540 Other reconciling items 2,484 2,104 Total assets – CMS Energy $ 25,292 $ 24,529 Consumers Total assets Electric utility 1 $ 14,459 $ 14,143 Gas utility 1 7,937 7,853 Other reconciling items 20 29 Total assets – Consumers $ 22,416 $ 22,025 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters . |
Asset Sales
Asset Sales | 6 Months Ended |
Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Asset Sales | Asset Sales Enterprises In April 2019, DIG completed a sale of transmission equipment to ITC and recognized a pre-tax gain of $16 million within maintenance and other operating expenses on CMS Energy’s consolidated statements of income. Consumers During the first quarter of 2019, management committed to a plan to sell a portion of Consumers’ electric utility’s substation transmission assets. Consumers expects to sell these assets to METC in 2019, at a price above their book value. Presented in the following table are the major classes of assets classified as held for sale on Consumers’ consolidated balance sheets at June 30, 2019 : In Millions Plant, property, and equipment, net $ 32 Construction work in progress 8 Total assets $ 40 |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Asset Sales | Asset Sales Enterprises In April 2019, DIG completed a sale of transmission equipment to ITC and recognized a pre-tax gain of $16 million within maintenance and other operating expenses on CMS Energy’s consolidated statements of income. Consumers During the first quarter of 2019, management committed to a plan to sell a portion of Consumers’ electric utility’s substation transmission assets. Consumers expects to sell these assets to METC in 2019, at a price above their book value. Presented in the following table are the major classes of assets classified as held for sale on Consumers’ consolidated balance sheets at June 30, 2019 : In Millions Plant, property, and equipment, net $ 32 Construction work in progress 8 Total assets $ 40 |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting standards | Implementation of New Accounting Standards ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. |
Allowance for loan losses | The allowance for loan losses is a valuation allowance to reflect estimated credit losses. The allowance is increased by the provision for loan losses and decreased by loan charge‑offs net of recoveries. Management estimates the allowance balance required by taking into consideration historical loan loss experience, the nature and volume of the portfolio, economic conditions, and other factors. Loan losses are charged against the allowance when the loss is confirmed, but no later than the point at which a loan becomes 120 days past due. |
Consumers Energy Company | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting standards | Implementation of New Accounting Standards ASU 2016‑02, Leases: This standard, which was effective on January 1, 2019 for CMS Energy and Consumers, establishes a new accounting model for leases. The standard requires lessees to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which were not recorded on the balance sheet under previous standards. The new guidance also amends the definition of a lease to require that a lessee have the right to control the use of a specified asset, and not simply control or take the output of the asset. On the statement of income, operating leases are generally accounted for under a straight-line expense model, while finance leases, which were previously referred to as capital leases, are generally accounted for under a financing model. Consistent with the previous lease guidance, however, the standard allows rate-regulated utilities to recognize expense consistent with the timing of recovery in rates. CMS Energy and Consumers elected to use certain practical expedients permitted by the standard, under which they were not required to perform lease assessments or reassessments for agreements existing on the effective date. They also elected a transition method under which they initially applied the standard on January 1, 2019, without adjusting amounts presented for prior periods. Under the standard, CMS Energy and Consumers recognized additional lease assets and liabilities on their consolidated balance sheets as of January 1, 2019 for their operating leases. In addition, in accordance with the standard, they have provided additional disclosures about their leases in Note 8, Leases . The standard did not have any impact on CMS Energy’s and Consumers’ consolidated net income or cash flows, and there was no cumulative-effect adjustment recorded to beginning retained earnings. New Accounting Standards Not Yet Effective ASU 2016‑13, Measurement of Credit Losses on Financial Instruments: This standard, which will be effective January 1, 2020 for CMS Energy and Consumers, provides new guidance for estimating and recording credit losses on financial instruments. The standard will apply to the recognition of loan losses at EnerBank as well as to the recognition of uncollectible accounts expense at Consumers. Entities will apply the standard using a modified retrospective approach, with a cumulative‑effect adjustment recorded to beginning retained earnings on the effective date. CMS Energy and Consumers are evaluating the impact of the standard on their consolidated financial statements. |
Contingencies And Commitments (
Contingencies And Commitments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Site Contingency [Line Items] | |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 2 July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee. |
Consumers Energy Company | |
Site Contingency [Line Items] | |
Guarantees | Presented in the following table are CMS Energy’s and Consumers’ guarantees at June 30, 2019 : In Millions Guarantee Description Issue Date Expiration Date Maximum Obligation Carrying Amount CMS Energy, including Consumers Indemnity obligations from stock and asset sale agreements 1 various indefinite $ 153 $ 2 Guarantees 2 various indefinite 36 — Consumers Guarantee 2 July 2011 indefinite $ 30 $ — 1 These obligations arose from stock and asset sale agreements under which CMS Energy or a subsidiary of CMS Energy indemnified the purchaser for losses resulting from various matters, primarily claims related to taxes. CMS Energy believes the likelihood of material loss to be remote for the indemnity obligations not recorded as liabilities. 2 At Consumers, this obligation comprises a guarantee provided to the U.S. Department of Energy in connection with a settlement agreement regarding damages resulting from the department’s failure to accept spent nuclear fuel from nuclear power plants formerly owned by Consumers. At CMS Energy, the guarantee obligations comprise Consumers’ guarantee to the U.S. Department of Energy and CMS Energy’s 1994 guarantee of non‑recourse revenue bonds issued by Genesee. |
Bay Harbor | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | CMS Energy expects to pay the following amounts for long‑term liquid disposal and operating and maintenance costs during the remainder of 2019 and in each of the next five years: In Millions 2019 2020 2021 2022 2023 2024 CMS Energy Long‑term liquid disposal and operating and maintenance costs $ 2 $ 4 $ 4 $ 4 $ 4 $ 4 |
Gas Utility | Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
Expected Remediation Costs By Year | Consumers expects to pay the following amounts for remediation and other response activity costs during the remainder of 2019 and in each of the next five years: In Millions 2019 2020 2021 2022 2023 2024 Consumers Remediation and other response activity costs $ 8 $ 16 $ 21 $ 7 $ 2 $ 2 |
Financings and Capitalization (
Financings and Capitalization (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Instrument [Line Items] | |
Major Long-Term Debt Transactions | Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019 : Principal Interest Rate Issue/Retirement Date Maturity Date Debt issuances CMS Energy, parent only Term loan facility $ 300 variable January 2019 December 2019 Junior subordinated notes 1 630 5.875 % February 2019 March 2079 Term loan facility 2 165 variable June 2019 June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 % May 2019 February 2050 Total Consumers $ 300 Total CMS Energy $ 1,395 Debt retirements CMS Energy, parent only Term loan facility $ 300 variable February 2019 December 2019 Term loan facility 180 variable February 2019 April 2019 Total CMS Energy, parent only $ 480 Consumers First mortgage bonds $ 300 5.650 % May 2019 April 2020 Total Consumers $ 300 Total CMS Energy $ 780 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent ( 2.845 percent at June 30, 2019 ). |
Revolving Credit Facilities | Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 2 $ 548 CMS Enterprises, including subsidiaries September 30, 2025 1 $ 18 $ — $ 8 $ 10 Consumers 2 June 5, 2023 $ 850 $ — $ 7 $ 843 November 23, 2020 250 — 15 235 September 9, 2019 3 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. 3 In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022. |
Schedule of Forward Contracts Indexed to Issuer's Equity | Presented in the following table are details of these contracts: Contract Date Maturity Date Number of Shares Initial Forward Price Per Share November 16, 2018 May 16, 2020 2,017,783 $ 49.06 November 20, 2018 May 20, 2020 777,899 50.91 February 21, 2019 August 21, 2020 2,083,340 52.27 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Major Long-Term Debt Transactions | Financings: Presented in the following table is a summary of major long‑term debt transactions during the six months ended June 30, 2019 : Principal Interest Rate Issue/Retirement Date Maturity Date Debt issuances CMS Energy, parent only Term loan facility $ 300 variable January 2019 December 2019 Junior subordinated notes 1 630 5.875 % February 2019 March 2079 Term loan facility 2 165 variable June 2019 June 2020 Total CMS Energy, parent only $ 1,095 Consumers First mortgage bonds $ 300 3.750 % May 2019 February 2050 Total Consumers $ 300 Total CMS Energy $ 1,395 Debt retirements CMS Energy, parent only Term loan facility $ 300 variable February 2019 December 2019 Term loan facility 180 variable February 2019 April 2019 Total CMS Energy, parent only $ 480 Consumers First mortgage bonds $ 300 5.650 % May 2019 April 2020 Total Consumers $ 300 Total CMS Energy $ 780 1 These unsecured obligations rank subordinate and junior in right of payment to all of CMS Energy’s existing and future senior indebtedness. 2 Outstanding borrowings bear interest at an annual rate of LIBOR plus 0.500 percent ( 2.845 percent at June 30, 2019 ). |
Revolving Credit Facilities | Revolving Credit Facilities: The following revolving credit facilities with banks were available at June 30, 2019 : In Millions Expiration Date Amount of Facility Amount Borrowed Letters of Credit Outstanding Amount Available CMS Energy, parent only June 5, 2023 $ 550 $ — $ 2 $ 548 CMS Enterprises, including subsidiaries September 30, 2025 1 $ 18 $ — $ 8 $ 10 Consumers 2 June 5, 2023 $ 850 $ — $ 7 $ 843 November 23, 2020 250 — 15 235 September 9, 2019 3 30 — 30 — 1 Under this facility, $8 million is available solely for the purpose of issuing letters of credit. Obligations under this facility are secured by the collateral accounts with the lending bank. 2 Obligations under these facilities are secured by first mortgage bonds of Consumers. 3 In July 2019, Consumers amended this revolving credit facility by extending the expiration date to April 2022. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets 1 Cash equivalents $ 18 $ 27 $ — $ — Restricted cash equivalents 22 21 16 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 16 14 12 10 DB SERP cash equivalents — 1 — — Derivative instruments 2 1 2 1 Total $ 58 $ 64 $ 31 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 16 $ 14 $ 12 $ 10 Derivative instruments 11 3 1 — Total $ 27 $ 17 $ 13 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Consumers Energy Company | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis | Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis: In Millions CMS Energy, including Consumers Consumers June 30 December 31 June 30 December 31 Assets 1 Cash equivalents $ 18 $ 27 $ — $ — Restricted cash equivalents 22 21 16 17 CMS Energy common stock — — 1 1 Nonqualified deferred compensation plan assets 16 14 12 10 DB SERP cash equivalents — 1 — — Derivative instruments 2 1 2 1 Total $ 58 $ 64 $ 31 $ 29 Liabilities 1 Nonqualified deferred compensation plan liabilities $ 16 $ 14 $ 12 $ 10 Derivative instruments 11 3 1 — Total $ 27 $ 17 $ 13 $ 10 1 All assets and liabilities were classified as Level 1 with the exception of derivative contracts, which were classified as Level 2 or Level 3. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,231 2,359 — — 2,359 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 12,292 13,112 1,177 10,053 1,882 11,589 11,630 459 9,404 1,767 Long-term payables 4 28 29 — — 29 27 27 — — 27 Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 105 105 — — 105 106 106 — — 106 Liabilities Long‑term debt 6 6,572 7,102 — 5,220 1,882 6,805 6,833 — 5,066 1,767 1 Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018 . 2 Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2019 and December 31, 2018 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018 . |
Schedule Of Investment Securities | Presented in the following table are these investment securities: In Millions June 30, 2019 December 31, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Cost Unrealized Gains Unrealized Losses Fair Value CMS Energy Debt securities $ 26 $ — $ — $ 26 $ 22 $ — $ 1 $ 21 |
Consumers Energy Company | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Schedule Of Carrying Amounts And Fair Values Of Financial Instruments | Presented in the following table are the carrying amounts and fair values, by level within the fair value hierarchy, of CMS Energy’s and Consumers’ financial instruments that are not recorded at fair value. The table excludes cash, cash equivalents, short‑term financial instruments, and trade accounts receivable and payable whose carrying amounts approximate their fair values. For information about assets and liabilities recorded at fair value and for additional details regarding the fair value hierarchy, see Note 5, Fair Value Measurements . In Millions June 30, 2019 December 31, 2018 Fair Value Fair Value Carrying Level Carrying Level Amount Total 1 2 3 Amount Total 1 2 3 CMS Energy, including Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable 2 2,231 2,359 — — 2,359 1,857 1,967 — — 1,967 Securities held to maturity 26 26 — 26 — 22 21 — 21 — Liabilities Long-term debt 3 12,292 13,112 1,177 10,053 1,882 11,589 11,630 459 9,404 1,767 Long-term payables 4 28 29 — — 29 27 27 — — 27 Consumers Assets Long‑term receivables 1 $ 20 $ 20 $ — $ — $ 20 $ 22 $ 22 $ — $ — $ 22 Notes receivable – related party 5 105 105 — — 105 106 106 — — 106 Liabilities Long‑term debt 6 6,572 7,102 — 5,220 1,882 6,805 6,833 — 5,066 1,767 1 Includes current accounts receivable of $14 million at June 30, 2019 and December 31, 2018 . 2 Includes current portion of notes receivable of $249 million at June 30, 2019 and $233 million at December 31, 2018 . For further details, see Note 7, Notes Receivable . 3 Includes current portion of long‑term debt of $1.1 billion at June 30, 2019 and $1.0 billion at December 31, 2018 . 4 Includes current portion of long‑term payables of $3 million at June 30, 2019 and $1 million at December 31, 2018 . 5 Includes current portion of notes receivable – related party of $7 million at June 30, 2019 and December 31, 2018 . For further details, see Note 7, Notes Receivable . 6 Includes current portion of long‑term debt of $26 million at June 30, 2019 and December 31, 2018 . |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule Of Current And Non-Current Notes Receivable | Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 249 $ 233 Non‑current EnerBank notes receivable 1,982 1,624 Total notes receivable $ 2,231 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 98 99 Total notes receivable $ 105 $ 106 |
Consumers Energy Company | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule Of Current And Non-Current Notes Receivable | Presented in the following table are details of CMS Energy’s and Consumers’ current and non‑current notes receivable: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Current EnerBank notes receivable, net of allowance for loan losses $ 249 $ 233 Non‑current EnerBank notes receivable 1,982 1,624 Total notes receivable $ 2,231 $ 1,857 Consumers Current DB SERP note receivable – related party $ 7 $ 7 Non‑current DB SERP note receivable – related party 98 99 Total notes receivable $ 105 $ 106 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Line Items] | |
Assets and Liabilities of Lessee | Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted June 30, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 51 $ 44 Lease liabilities Current lease liabilities 2 10 8 Non-current lease liabilities 3 41 35 Finance leases Right-of-use assets $ 76 $ 76 Lease liabilities 4 Current lease liabilities 7 7 Non-current lease liabilities 63 63 Weighted-average remaining lease term (in years) Operating leases 16 13 Finance leases 12 12 Weighted-average discount rate Operating leases 3.7 % 3.7 % Finance leases 5 2.0 % 2.0 % 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. |
Lease Cost | Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions CMS Energy, including Consumers Consumers June 30, 2019 Three Months Ended Six Months Ended Three Months Ended Six Months Ended Operating lease costs $ 3 $ 6 $ 3 $ 5 Finance lease costs Amortization of right-of-use assets 2 4 2 4 Interest on lease liabilities 5 9 5 9 Variable lease costs 24 55 24 55 Total lease costs $ 34 $ 74 $ 34 $ 73 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Six Months Ended June 30, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 5 $ 5 Cash used in operating activities for finance leases 9 9 Cash used in financing activities for finance leases 3 3 |
Lessee Operating Lease Liability and Finance Liability Maturity | Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases June 30, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 11 17 6 23 2021 11 17 5 22 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 79 11 90 Total minimum lease payments $ 72 $ 162 $ 40 $ 202 Less discount 21 128 4 132 Present value of minimum lease payments $ 51 $ 34 $ 36 $ 70 Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 9 17 6 23 2021 9 17 5 22 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 28 79 11 90 Total minimum lease payments $ 60 $ 162 $ 40 $ 202 Less discount 17 128 4 132 Present value of minimum lease payments $ 43 $ 34 $ 36 $ 70 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02: In Millions December 31, 2018 Capital Leases Operating Leases CMS Energy, including Consumers 2019 $ 14 $ 16 2020 11 15 2021 11 15 2022 8 8 2023 6 5 2024 and thereafter 21 38 Total minimum lease payments $ 71 $ 97 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Consumers 2019 $ 14 $ 14 2020 11 14 2021 11 13 2022 8 7 2023 6 5 2024 21 32 Total minimum lease payments $ 71 $ 85 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 |
Lessor, Operating Lease, Payments to be Received, Maturity | Presented in the following table are the minimum rental payments to be received under CMS Energy’s non‑cancelable operating leases: In Millions June 30, 2019 Remainder of 2019 $ 28 2020 54 2021 54 2022 48 2023 44 2024 44 2025 and thereafter 62 Total minimum lease payments $ 334 |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases: In Millions June 30, 2019 CMS Energy, including Consumers Consumers Remainder of 2019 $ — $ 1 2020 — 1 2021 — 1 2022 — 1 2023 — 1 2024 — 1 2025 and thereafter 10 19 Total minimum lease payments $ 10 $ 25 Less unearned income 5 15 Present value of lease payments recognized as lease receivables $ 5 $ 10 |
Consumers Energy Company | |
Leases [Line Items] | |
Assets and Liabilities of Lessee | Presented in the following table is information about CMS Energy’s and Consumers’ lease right-of-use assets and lease liabilities: In Millions, Except as Noted June 30, 2019 CMS Energy, including Consumers Consumers Operating leases Right-of-use assets 1 $ 51 $ 44 Lease liabilities Current lease liabilities 2 10 8 Non-current lease liabilities 3 41 35 Finance leases Right-of-use assets $ 76 $ 76 Lease liabilities 4 Current lease liabilities 7 7 Non-current lease liabilities 63 63 Weighted-average remaining lease term (in years) Operating leases 16 13 Finance leases 12 12 Weighted-average discount rate Operating leases 3.7 % 3.7 % Finance leases 5 2.0 % 2.0 % 1 CMS Energy’s and Consumers’ operating right-of-use lease assets are reported as other non‑current assets on their consolidated balance sheets. 2 The current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other current liabilities on their consolidated balance sheets. 3 The non‑current portion of CMS Energy’s and Consumers’ operating lease liabilities are reported as other non‑current liabilities on their consolidated balance sheets. 4 This includes $25 million for leases with related parties, of which less than $1 million is current. 5 This rate excludes the impact of Consumers’ pipeline agreements and long-term PPAs accounted for as finance leases. The required capacity payments under these agreements, when compared to the underlying fair value of the leased assets, result in effective interest rates that exceed market rates for leases with similar terms. |
Lease Cost | Presented in the following table is a summary of CMS Energy’s and Consumers’ total lease costs: In Millions CMS Energy, including Consumers Consumers June 30, 2019 Three Months Ended Six Months Ended Three Months Ended Six Months Ended Operating lease costs $ 3 $ 6 $ 3 $ 5 Finance lease costs Amortization of right-of-use assets 2 4 2 4 Interest on lease liabilities 5 9 5 9 Variable lease costs 24 55 24 55 Total lease costs $ 34 $ 74 $ 34 $ 73 Presented in the following table is cash flow information related to amounts paid on CMS Energy’s and Consumers’ lease liabilities: In Millions Six Months Ended June 30, 2019 CMS Energy, including Consumers Consumers Cash paid for amounts included in the measurement of lease liabilities Cash used in operating activities for operating leases $ 5 $ 5 Cash used in operating activities for finance leases 9 9 Cash used in financing activities for finance leases 3 3 |
Lessee Operating Lease Liability and Finance Liability Maturity | Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases at December 31, 2018, prior to the adoption of ASU 2016‑02: In Millions December 31, 2018 Capital Leases Operating Leases CMS Energy, including Consumers 2019 $ 14 $ 16 2020 11 15 2021 11 15 2022 8 8 2023 6 5 2024 and thereafter 21 38 Total minimum lease payments $ 71 $ 97 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Consumers 2019 $ 14 $ 14 2020 11 14 2021 11 13 2022 8 7 2023 6 5 2024 21 32 Total minimum lease payments $ 71 $ 85 Less discount 22 Present value of minimum lease payments $ 49 Less current portion 9 Non-current portion $ 40 Presented in the following table are the minimum rental commitments under CMS Energy’s and Consumers’ non‑cancelable leases: In Millions Finance Leases June 30, 2019 Operating Leases Pipelines and PPAs Other Total CMS Energy, including Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 11 17 6 23 2021 11 17 5 22 2022 5 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 35 79 11 90 Total minimum lease payments $ 72 $ 162 $ 40 $ 202 Less discount 21 128 4 132 Present value of minimum lease payments $ 51 $ 34 $ 36 $ 70 Consumers Remainder of 2019 $ 5 $ 9 $ 5 $ 14 2020 9 17 6 23 2021 9 17 5 22 2022 4 14 5 19 2023 3 13 5 18 2024 2 13 3 16 2025 and thereafter 28 79 11 90 Total minimum lease payments $ 60 $ 162 $ 40 $ 202 Less discount 17 128 4 132 Present value of minimum lease payments $ 43 $ 34 $ 36 $ 70 |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | Presented in the following table are the minimum rental payments to be received under CMS Energy’s and Consumers’ non‑cancelable direct financing leases: In Millions June 30, 2019 CMS Energy, including Consumers Consumers Remainder of 2019 $ — $ 1 2020 — 1 2021 — 1 2022 — 1 2023 — 1 2024 — 1 2025 and thereafter 10 19 Total minimum lease payments $ 10 $ 25 Less unearned income 5 15 Present value of lease payments recognized as lease receivables $ 5 $ 10 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 20 $ 24 $ 3 $ 5 $ 7 $ 9 Interest cost 24 23 49 45 10 9 20 18 Expected return on plan assets (41 ) (37 ) (81 ) (74 ) (22 ) (25 ) (44 ) (49 ) Amortization of: Net loss 12 19 24 37 6 4 13 8 Prior service cost (credit) 1 — 1 1 (15 ) (17 ) (31 ) (34 ) Net periodic cost (credit) $ 6 $ 17 $ 13 $ 33 $ (18 ) $ (24 ) $ (35 ) $ (48 ) Consumers Net periodic cost (credit) Service cost $ 10 $ 11 $ 20 $ 23 $ 4 $ 4 $ 7 $ 8 Interest cost 23 21 46 42 10 9 20 17 Expected return on plan assets (38 ) (34 ) (76 ) (69 ) (20 ) (23 ) (41 ) (46 ) Amortization of: Net loss 11 18 23 36 6 4 13 8 Prior service cost (credit) 1 — 1 1 (16 ) (16 ) (31 ) (32 ) Net periodic cost (credit) $ 7 $ 16 $ 14 $ 33 $ (16 ) $ (22 ) $ (32 ) $ (45 ) |
Consumers Energy Company | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Net Benefit Costs | Presented in the following table are the costs (credits) and other changes in plan assets and benefit obligations incurred in CMS Energy’s and Consumers’ retirement benefits plans: In Millions DB Pension Plans OPEB Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 2019 2018 2019 2018 CMS Energy, including Consumers Net periodic cost (credit) Service cost $ 10 $ 12 $ 20 $ 24 $ 3 $ 5 $ 7 $ 9 Interest cost 24 23 49 45 10 9 20 18 Expected return on plan assets (41 ) (37 ) (81 ) (74 ) (22 ) (25 ) (44 ) (49 ) Amortization of: Net loss 12 19 24 37 6 4 13 8 Prior service cost (credit) 1 — 1 1 (15 ) (17 ) (31 ) (34 ) Net periodic cost (credit) $ 6 $ 17 $ 13 $ 33 $ (18 ) $ (24 ) $ (35 ) $ (48 ) Consumers Net periodic cost (credit) Service cost $ 10 $ 11 $ 20 $ 23 $ 4 $ 4 $ 7 $ 8 Interest cost 23 21 46 42 10 9 20 17 Expected return on plan assets (38 ) (34 ) (76 ) (69 ) (20 ) (23 ) (41 ) (46 ) Amortization of: Net loss 11 18 23 36 6 4 13 8 Prior service cost (credit) 1 — 1 1 (16 ) (16 ) (31 ) (32 ) Net periodic cost (credit) $ 7 $ 16 $ 14 $ 33 $ (16 ) $ (22 ) $ (32 ) $ (45 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2019 2018 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.4 5.6 TCJA excess deferred taxes 1 (3.5 ) (3.4 ) Production tax credits (2.5 ) (1.7 ) Accelerated flow-through of regulatory tax benefits 2 (1.5 ) (5.0 ) Research and development tax credits, net 3 (0.2 ) (2.2 ) Other, net (0.6 ) 0.3 Effective tax rate 18.1 % 14.6 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.7 5.8 TCJA excess deferred taxes 1 (3.2 ) (3.2 ) Accelerated flow-through of regulatory tax benefits 2 (1.8 ) (4.7 ) Production tax credits (1.3 ) (1.5 ) Research and development tax credits, net 3 (0.2 ) (2.1 ) Other, net (0.4 ) — Effective tax rate 19.8 % 15.3 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019 , this reserve for refund of these excess deferred taxes totaled $53 million . 2 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018 . 3 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. |
Consumers Energy Company | |
Income Taxes [Line Items] | |
Schedule Of Effective Income Tax Rate Reconciliation | Presented in the following table is a reconciliation of the statutory U.S. federal income tax rate to the effective income tax rate from continuing operations: Six Months Ended June 30 2019 2018 CMS Energy, including Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.4 5.6 TCJA excess deferred taxes 1 (3.5 ) (3.4 ) Production tax credits (2.5 ) (1.7 ) Accelerated flow-through of regulatory tax benefits 2 (1.5 ) (5.0 ) Research and development tax credits, net 3 (0.2 ) (2.2 ) Other, net (0.6 ) 0.3 Effective tax rate 18.1 % 14.6 % Consumers U.S. federal income tax rate 21.0 % 21.0 % Increase (decrease) in income taxes from: State and local income taxes, net of federal effect 5.7 5.8 TCJA excess deferred taxes 1 (3.2 ) (3.2 ) Accelerated flow-through of regulatory tax benefits 2 (1.8 ) (4.7 ) Production tax credits (1.3 ) (1.5 ) Research and development tax credits, net 3 (0.2 ) (2.1 ) Other, net (0.4 ) — Effective tax rate 19.8 % 15.3 % 1 In December 2017, Consumers remeasured its deferred tax assets and liabilities at the new federal tax rate enacted by the TCJA and recorded a $1.8 billion regulatory liability. This regulatory liability relates to the excess deferred taxes arising from accelerated tax depreciation on assets in rate base that are governed by normalization provisions of the Internal Revenue Code. The normalization provisions require that the excess deferred taxes be refunded to customers over the remaining average service life of the associated assets. In January 2018, Consumers began to reduce this regulatory liability by crediting income tax expense. Consumers has fully reserved for the eventual refund of these excess deferred taxes that it has credited to income tax expense in a separate non‑current regulatory liability established by reducing revenue, and will continue to do so until these benefits are passed on to customers in accordance with an MPSC order, expected to be issued in 2019. At June 30, 2019 , this reserve for refund of these excess deferred taxes totaled $53 million . 2 In 2013, the MPSC issued an order authorizing Consumers to accelerate the flow‑through to electric and gas customers of certain income tax benefits associated primarily with the cost of removal of plant placed in service before 1993. Consumers implemented this regulatory treatment beginning in 2014, with the electric portion ending in 2018. This change, which also accelerates Consumers’ recognition of the income tax benefits, reduced Consumers’ income tax expense by $7 million for the six months ended June 30, 2019 and by $22 million for the six months ended June 30, 2018 . 3 In March 2018, Consumers finalized a study of research and development tax credits for the tax years 2012 through 2016. As a result, Consumers recognized an $8 million increase in the credit, net of reserves for uncertain tax positions, at that time. |
Earnings Per Share - CMS Ener_2
Earnings Per Share - CMS Energy (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS Computations | Presented in the following table are CMS Energy’s basic and diluted EPS computations based on net income: In Millions, Except Per Share Amounts Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 Income available to common stockholders Net income $ 94 $ 140 $ 307 $ 381 Less income attributable to noncontrolling interests 1 1 1 1 Net income available to common stockholders – basic and diluted $ 93 $ 139 $ 306 $ 380 Average common shares outstanding Weighted-average shares – basic 282.9 282.1 282.9 281.8 Add dilutive nonvested stock awards 0.6 0.5 0.6 0.6 Add dilutive forward equity sale contracts 0.5 — 0.3 — Weighted-average shares – diluted 284.0 282.6 283.8 282.4 Net income per average common share available to common stockholders Basic $ 0.33 $ 0.49 $ 1.08 $ 1.35 Diluted 0.33 0.49 1.08 1.35 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Components Of Operating Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ — $ — $ 621 Commercial 362 58 — — 420 Industrial 174 8 — — 182 Other 67 41 — — 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ — $ — $ 1,331 Financing income 1 2 — — 3 Total operating revenue – Consumers $ 1,027 $ 307 $ — $ — $ 1,334 In Millions Three Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,087 $ 302 $ — $ — $ 1,389 Other — — 24 — 24 Revenue recognized from contracts with customers $ 1,087 $ 302 $ 24 $ — $ 1,413 Leasing income — — 37 — 37 Financing income 2 2 — 36 40 Consumers alternative revenue programs — 2 — — 2 Total operating revenue – CMS Energy $ 1,089 $ 306 $ 61 $ 36 $ 1,492 Consumers Consumers utility revenue Residential $ 475 $ 194 $ — $ — $ 669 Commercial 386 58 — — 444 Industrial 170 9 — — 179 Other 56 41 — — 97 Revenue recognized from contracts with customers $ 1,087 $ 302 $ — $ — $ 1,389 Financing income 2 2 — — 4 Alternative revenue programs — 2 — — 2 Total operating revenue – Consumers $ 1,089 $ 306 $ — $ — $ 1,395 In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ — $ — $ 1,733 Commercial 713 232 — — 945 Industrial 336 33 — — 369 Other 131 91 — — 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ — $ — $ 3,269 Financing income 4 4 — — 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ — $ — $ 3,277 In Millions Six Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,163 $ 1,075 $ — $ — $ 3,238 Other — — 48 — 48 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ 48 $ — $ 3,286 Leasing income — — 76 — 76 Financing income 4 4 — 71 79 Consumers alternative revenue programs — 4 — — 4 Total operating revenue – CMS Energy $ 2,167 $ 1,083 $ 124 $ 71 $ 3,445 Consumers Consumers utility revenue Residential $ 976 $ 731 $ — $ — $ 1,707 Commercial 747 220 — — 967 Industrial 313 33 — — 346 Other 127 91 — — 218 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ — $ — $ 3,238 Financing income 4 4 — — 8 Alternative revenue programs — 4 — — 4 Total operating revenue – Consumers $ 2,167 $ 1,083 $ — $ — $ 3,250 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. 2 Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements . |
Consumers Energy Company | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Components Of Operating Revenue | Presented in the following tables are the components of operating revenue: In Millions Three Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,026 $ 305 $ — $ — $ 1,331 Other — — 16 — 16 Revenue recognized from contracts with customers $ 1,026 $ 305 $ 16 $ — $ 1,347 Leasing income — — 42 — 42 Financing income 1 2 — 53 56 Total operating revenue – CMS Energy $ 1,027 $ 307 $ 58 $ 53 $ 1,445 Consumers Consumers utility revenue Residential $ 423 $ 198 $ — $ — $ 621 Commercial 362 58 — — 420 Industrial 174 8 — — 182 Other 67 41 — — 108 Revenue recognized from contracts with customers $ 1,026 $ 305 $ — $ — $ 1,331 Financing income 1 2 — — 3 Total operating revenue – Consumers $ 1,027 $ 307 $ — $ — $ 1,334 In Millions Three Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 1,087 $ 302 $ — $ — $ 1,389 Other — — 24 — 24 Revenue recognized from contracts with customers $ 1,087 $ 302 $ 24 $ — $ 1,413 Leasing income — — 37 — 37 Financing income 2 2 — 36 40 Consumers alternative revenue programs — 2 — — 2 Total operating revenue – CMS Energy $ 1,089 $ 306 $ 61 $ 36 $ 1,492 Consumers Consumers utility revenue Residential $ 475 $ 194 $ — $ — $ 669 Commercial 386 58 — — 444 Industrial 170 9 — — 179 Other 56 41 — — 97 Revenue recognized from contracts with customers $ 1,087 $ 302 $ — $ — $ 1,389 Financing income 2 2 — — 4 Alternative revenue programs — 2 — — 2 Total operating revenue – Consumers $ 1,089 $ 306 $ — $ — $ 1,395 In Millions Six Months Ended June 30, 2019 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,126 $ 1,143 $ — $ — $ 3,269 Other — — 35 — 35 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ 35 $ — $ 3,304 Leasing income — — 90 — 90 Financing income 4 4 — 102 110 Total operating revenue – CMS Energy $ 2,130 $ 1,147 $ 125 $ 102 $ 3,504 Consumers Consumers utility revenue Residential $ 946 $ 787 $ — $ — $ 1,733 Commercial 713 232 — — 945 Industrial 336 33 — — 369 Other 131 91 — — 222 Revenue recognized from contracts with customers $ 2,126 $ 1,143 $ — $ — $ 3,269 Financing income 4 4 — — 8 Total operating revenue – Consumers $ 2,130 $ 1,147 $ — $ — $ 3,277 In Millions Six Months Ended June 30, 2018 Electric Utility Gas Utility Enterprises 1 Other Reconciling 2 Consolidated CMS Energy, including Consumers Consumers utility revenue $ 2,163 $ 1,075 $ — $ — $ 3,238 Other — — 48 — 48 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ 48 $ — $ 3,286 Leasing income — — 76 — 76 Financing income 4 4 — 71 79 Consumers alternative revenue programs — 4 — — 4 Total operating revenue – CMS Energy $ 2,167 $ 1,083 $ 124 $ 71 $ 3,445 Consumers Consumers utility revenue Residential $ 976 $ 731 $ — $ — $ 1,707 Commercial 747 220 — — 967 Industrial 313 33 — — 346 Other 127 91 — — 218 Revenue recognized from contracts with customers $ 2,163 $ 1,075 $ — $ — $ 3,238 Financing income 4 4 — — 8 Alternative revenue programs — 4 — — 4 Total operating revenue – Consumers $ 2,167 $ 1,083 $ — $ — $ 3,250 1 Amounts represent the enterprises segment’s operating revenue from independent power production and CMS ERM’s sales of energy commodities in support of the independent power production portfolio. 2 Amount represents EnerBank’s operating revenue from providing primarily unsecured consumer installment loans for financing home improvements . |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Cash and cash equivalents $ 312 $ 153 Restricted cash and cash equivalents 22 21 Other non-current assets — 1 Cash and cash equivalents, including restricted amounts $ 334 $ 175 Consumers Cash and cash equivalents $ 196 $ 39 Restricted cash and cash equivalents 16 17 Cash and cash equivalents, including restricted amounts $ 212 $ 56 |
Consumers Energy Company | |
Cash and Cash Equivalents [Line Items] | |
Schedule Of Cash And Cash Equivalents, Including Restricted Amounts | Presented in the following table are the components of total cash and cash equivalents, including restricted amounts, and their location on CMS Energy’s and Consumers’ consolidated balance sheets: In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Cash and cash equivalents $ 312 $ 153 Restricted cash and cash equivalents 22 21 Other non-current assets — 1 Cash and cash equivalents, including restricted amounts $ 334 $ 175 Consumers Cash and cash equivalents $ 196 $ 39 Restricted cash and cash equivalents 16 17 Cash and cash equivalents, including restricted amounts $ 212 $ 56 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 CMS Energy, including Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Enterprises 58 61 125 124 Other reconciling items 53 36 102 71 Total operating revenue – CMS Energy $ 1,445 $ 1,492 $ 3,504 $ 3,445 Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Total operating revenue – Consumers $ 1,334 $ 1,395 $ 3,277 $ 3,250 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Enterprises 10 14 11 29 Other reconciling items (15 ) (26 ) (29 ) (42 ) Total net income available to common stockholders – CMS Energy $ 93 $ 139 $ 306 $ 380 Consumers Net income (loss) available to common stockholder Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Other reconciling items (1 ) — (1 ) — Total net income available to common stockholder – Consumers $ 97 $ 151 $ 323 $ 393 In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Enterprises 405 412 Other reconciling items 44 42 Total plant, property, and equipment, gross – CMS Energy $ 24,263 $ 24,400 Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Other reconciling items 19 17 Total plant, property, and equipment, gross – Consumers $ 23,833 $ 23,963 CMS Energy, including Consumers Total assets Electric utility 1 $ 14,396 $ 14,079 Gas utility 1 7,890 7,806 Enterprises 522 540 Other reconciling items 2,484 2,104 Total assets – CMS Energy $ 25,292 $ 24,529 Consumers Total assets Electric utility 1 $ 14,459 $ 14,143 Gas utility 1 7,937 7,853 Other reconciling items 20 29 Total assets – Consumers $ 22,416 $ 22,025 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters . |
Consumers Energy Company | |
Segment Reporting Information [Line Items] | |
Schedule Of Financial Information By Reportable Segments | Presented in the following tables is financial information by reportable segment: In Millions Three Months Ended Six Months Ended June 30 2019 2018 2019 2018 CMS Energy, including Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Enterprises 58 61 125 124 Other reconciling items 53 36 102 71 Total operating revenue – CMS Energy $ 1,445 $ 1,492 $ 3,504 $ 3,445 Consumers Operating revenue Electric utility $ 1,027 $ 1,089 $ 2,130 $ 2,167 Gas utility 307 306 1,147 1,083 Total operating revenue – Consumers $ 1,334 $ 1,395 $ 3,277 $ 3,250 CMS Energy, including Consumers Net income (loss) available to common stockholders Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Enterprises 10 14 11 29 Other reconciling items (15 ) (26 ) (29 ) (42 ) Total net income available to common stockholders – CMS Energy $ 93 $ 139 $ 306 $ 380 Consumers Net income (loss) available to common stockholder Electric utility $ 90 $ 130 $ 195 $ 269 Gas utility 8 21 129 124 Other reconciling items (1 ) — (1 ) — Total net income available to common stockholder – Consumers $ 97 $ 151 $ 323 $ 393 In Millions June 30, 2019 December 31, 2018 CMS Energy, including Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Enterprises 405 412 Other reconciling items 44 42 Total plant, property, and equipment, gross – CMS Energy $ 24,263 $ 24,400 Consumers Plant, property, and equipment, gross Electric utility 1, 2 $ 15,660 $ 16,027 Gas utility 1 8,154 7,919 Other reconciling items 19 17 Total plant, property, and equipment, gross – Consumers $ 23,833 $ 23,963 CMS Energy, including Consumers Total assets Electric utility 1 $ 14,396 $ 14,079 Gas utility 1 7,890 7,806 Enterprises 522 540 Other reconciling items 2,484 2,104 Total assets – CMS Energy $ 25,292 $ 24,529 Consumers Total assets Electric utility 1 $ 14,459 $ 14,143 Gas utility 1 7,937 7,853 Other reconciling items 20 29 Total assets – Consumers $ 22,416 $ 22,025 1 Amounts include a portion of Consumers’ other common assets attributable to both the electric and gas utility businesses. 2 Costs related to coal-fueled electric generating units to be retired in 2023 were removed and recorded as a regulatory asset in June 2019. For additional details, see Note 2, Regulatory Matters . |
Asset Sales (Tables)
Asset Sales (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Consumers Energy Company | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Assets Sold | Presented in the following table are the major classes of assets classified as held for sale on Consumers’ consolidated balance sheets at June 30, 2019 : In Millions Plant, property, and equipment, net $ 32 Construction work in progress 8 Total assets $ 40 |
Regulatory Matters (Narrative)
Regulatory Matters (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jun. 30, 2018USD ($) | May 31, 2018USD ($) | Jun. 30, 2019USD ($)coal_fueled_electric_generating_unit | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)coal_fueled_electric_generating_unit | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | May 31, 2019USD ($) | Nov. 30, 2018USD ($) | |
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, current | $ 67 | $ 67 | $ 155 | ||||||||
Regulatory liabilities, noncurrent | 3,786 | 3,786 | 3,681 | ||||||||
Regulatory assets | 2,344 | 2,344 | 1,743 | ||||||||
Revenue | 1,445 | $ 1,492 | 3,504 | $ 3,445 | |||||||
Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, current | 67 | 67 | 155 | ||||||||
Regulatory liabilities, noncurrent | 3,786 | 3,786 | 3,681 | ||||||||
Regulatory assets | 2,344 | 2,344 | 1,743 | ||||||||
Revenue | 1,334 | $ 1,395 | 3,277 | $ 3,250 | |||||||
Income Taxes, Net | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, noncurrent | $ 1,600 | ||||||||||
Income Taxes Subject To Normalization | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, noncurrent | 1,700 | ||||||||||
Income Taxes Not Subject To Normalization | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory assets | 300 | ||||||||||
Taxes Not Related To Plant Assets | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, noncurrent | $ 200 | ||||||||||
Regulatory liability remaining life (in years) | 10 years | ||||||||||
TCJA Reserve For Refund | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, noncurrent | 53 | 53 | |||||||||
Electric Rate Case | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Annual rate increase authorized | $ (24) | $ 72 | |||||||||
Rate of return on equity authorized | 10.00% | 10.00% | |||||||||
Annual rate increase requested | $ 58 | ||||||||||
Rate of return on equity requested | 10.75% | ||||||||||
Annual rate increase requested, amended | $ 44 | ||||||||||
Electric Rate Case | Revenue Subject to Refund - Other | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, current | 36 | 36 | |||||||||
Electric Rate Case Tax Reform Rate Change | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Annual rate increase authorized | $ (113) | ||||||||||
Electric Rate Case Tax Reform Rate Change | Revenue Subject to Refund - Tax Reform Rate Change | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, current | 70 | ||||||||||
Electric Rate Case Tax Reform Rate Change | Income Taxes, Net | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, noncurrent | $ 1,200 | ||||||||||
Electric Rate Case Tax Reform Rate Change | Income Taxes Subject To Normalization | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liability remaining life (in years) | 27 years | ||||||||||
Electric Rate Case Tax Reform Rate Change | Income Taxes Not Subject To Normalization | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory asset remaining life (in years) | 27 years | ||||||||||
Electric Rate Case Net Of TCJA Impact | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Annual rate increase authorized | $ 89 | ||||||||||
Gas Rate Case Tax Reform Rate Change | Revenue Subject to Refund - Tax Reform Rate Change | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, current | $ 31 | ||||||||||
Gas Rate Case Tax Reform Rate Change | Income Taxes, Net | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, noncurrent | $ 400 | ||||||||||
Gas Rate Case Tax Reform Rate Change | Income Taxes Subject To Normalization | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liability remaining life (in years) | 44 years | ||||||||||
Gas Rate Case Tax Reform Rate Change | Income Taxes Not Subject To Normalization | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory asset remaining life (in years) | 44 years | ||||||||||
Gas Rate Case And Electric Rate Case Tax Reform Rate Change | Revenue Subject to Refund - Tax Reform Rate Change | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Regulatory liabilities, current | $ 9 | $ 9 | |||||||||
Energy Waste Reduction Plan Incentive | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Requested recovery/collection | $ 34 | ||||||||||
Revenue | $ 34 | ||||||||||
Coal-Fueled Electric Generating Units to be Retired | Consumers Energy Company | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Number of units | coal_fueled_electric_generating_unit | 2 | 2 | |||||||||
Regulatory assets | $ 657 | $ 657 |
Contingencies And Commitments_2
Contingencies And Commitments (Contingencies And Commitments) (Details) violation in Thousands | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)violationsite | Jan. 31, 2019USD ($) | Jun. 30, 2019USD ($)sitelawsuit | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | ||||
Regulatory assets | $ 2,344,000,000 | $ 2,344,000,000 | $ 1,743,000,000 | |
Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Regulatory assets | 2,344,000,000 | 2,344,000,000 | $ 1,743,000,000 | |
Bay Harbor | ||||
Loss Contingencies [Line Items] | ||||
Accrual for obligations for environmental remediation | $ 45,000,000 | $ 45,000,000 | ||
Discounted projected costs rate | 4.34% | 4.34% | ||
Remaining undiscounted obligation amount | $ 56,000,000 | $ 56,000,000 | ||
Accrual for environmental loss contingencies, inflation rate | 1.00% | 1.00% | ||
Electric Utility | NREPA | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for obligations for environmental remediation | $ 3,000,000 | $ 3,000,000 | ||
Electric Utility | NREPA | Minimum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 3,000,000 | 3,000,000 | ||
Electric Utility | NREPA | Maximum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 4,000,000 | 4,000,000 | ||
Electric Utility | CERCLA Liability | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for obligations for environmental remediation | 3,000,000 | 3,000,000 | ||
Electric Utility | CERCLA Liability | Minimum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 3,000,000 | 3,000,000 | ||
Electric Utility | CERCLA Liability | Maximum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | 8,000,000 | 8,000,000 | ||
Gas Utility | NREPA | Maximum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for obligations for environmental remediation | 1,000,000 | 1,000,000 | ||
Remediation and other response activity costs | 3,000,000 | 3,000,000 | ||
Gas Utility | Manufactured Gas Plant | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Accrual for obligations for environmental remediation | $ 68,000,000 | $ 68,000,000 | ||
Discounted projected costs rate | 2.57% | 2.57% | ||
Remaining undiscounted obligation amount | $ 74,000,000 | $ 74,000,000 | ||
Number of former MGPs | site | 23 | 23 | ||
Accrual for environmental loss contingencies, inflation rate | 2.50% | 2.50% | ||
Authorized recovery, collection period | 10 years | |||
Regulatory assets | $ 129,000,000 | $ 129,000,000 | ||
Equatorial Guinea Tax Claim | ||||
Loss Contingencies [Line Items] | ||||
Foreign government tax claim on sale | $ 152,000,000 | |||
Class Action Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | lawsuit | 4 | |||
Individual Lawsuits | ||||
Loss Contingencies [Line Items] | ||||
Number of lawsuits | lawsuit | 1 | |||
MCV PPA | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Foreign government tax claim on sale | $ 270,000,000 | |||
Underwater cables Straits of Mackinac | Maximum | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Remediation and other response activity costs | $ 10,000,000 | $ 10,000,000 | ||
MPSC Gas Staking MISS DIG Act [Member] | Consumers Energy Company | ||||
Loss Contingencies [Line Items] | ||||
Number of alleged violations | violation | 20 | |||
Maximum possible loss per violation | $ 5,000 |
Contingencies And Commitments_3
Contingencies And Commitments (Expected Remediation Cost By Year) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Bay Harbor | |
Site Contingency [Line Items] | |
2019 | $ 2 |
2020 | 4 |
2021 | 4 |
2022 | 4 |
2023 | 4 |
2024 | 4 |
Gas Utility | Manufactured Gas Plant | Consumers Energy Company | |
Site Contingency [Line Items] | |
2019 | 8 |
2020 | 16 |
2021 | 21 |
2022 | 7 |
2023 | 2 |
2024 | $ 2 |
Contingencies And Commitments_4
Contingencies And Commitments (Guarantees) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Guarantees | |
Guarantees And Other Contingencies [Line Items] | |
Guarantee Description | Guarantees |
Expiration Date | indefinite |
Maximum Obligation | $ 36 |
Carrying Amount | $ 0 |
Guarantees | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Guarantee Description | Guarantee |
Expiration Date | indefinite |
Maximum Obligation | $ 30 |
Carrying Amount | $ 0 |
Indemnity Obligations From Stock And Asset Sales Agreements | |
Guarantees And Other Contingencies [Line Items] | |
Guarantee Description | Indemnity obligations from stock and asset sales agreements |
Expiration Date | indefinite |
Maximum Obligation | $ 153 |
Carrying Amount | 2 |
Tax And Other Indemnity Obligations | Consumers Energy Company | |
Guarantees And Other Contingencies [Line Items] | |
Carrying Amount | $ 1 |
Financings and Capitalization_2
Financings and Capitalization (Major Long-Term Debt Transactions) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |
Principal balance | $ 1,395 |
Debt retirement, principal | 780 |
Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | 300 |
Debt retirement, principal | 300 |
First mortgage bonds due February 2050 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Principal balance | $ 300 |
Interest Rate | 3.75% |
Debt issuance date | May 2019 |
Maturity Date | February 2050 |
First mortgage bonds due April 2020 | Consumers Energy Company | |
Debt Instrument [Line Items] | |
Debt retirement, principal | $ 300 |
Interest Rate | 5.65% |
Debt retirement date | May 2019 |
Maturity Date | April 2020 |
CMS Energy Corporation | |
Debt Instrument [Line Items] | |
Principal balance | $ 1,095 |
Debt retirement, principal | 480 |
CMS Energy Corporation | Term loan facility due December 2019 | |
Debt Instrument [Line Items] | |
Principal balance | 300 |
Debt retirement, principal | $ 300 |
Debt issuance date | January 2019 |
Debt retirement date | February 2019 |
Maturity Date | December 2019 |
CMS Energy Corporation | 5.875% Junior Subordinated Notes due 2079 | |
Debt Instrument [Line Items] | |
Principal balance | $ 630 |
Interest Rate | 5.875% |
Debt issuance date | February 2019 |
Maturity Date | March 2079 |
CMS Energy Corporation | Term loan facility due June 2020 | |
Debt Instrument [Line Items] | |
Principal balance | $ 165 |
Debt issuance date | June 2019 |
Maturity Date | June 2020 |
Effective interest rate | 2.845% |
CMS Energy Corporation | Term loan facility due April 2019 | |
Debt Instrument [Line Items] | |
Debt retirement, principal | $ 180 |
Debt retirement date | February 2019 |
Maturity Date | April 2019 |
London Interbank Offered Rate (LIBOR) | CMS Energy Corporation | Term loan facility due June 2020 | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Financings and Capitalization_3
Financings and Capitalization (Revolving Credit Facilities) (Details) | Jun. 30, 2019USD ($) |
Revolving Credit Facilities September 20, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 18,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 8,000,000 |
Amount Available | 10,000,000 |
$850m Revolving Credit Facilities June 5, 2023 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 850,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 7,000,000 |
Amount Available | 843,000,000 |
Revolving Credit Facilities November 23, 2020 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 250,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 15,000,000 |
Amount Available | 235,000,000 |
Revolving Credit Facilities September 9, 2019 | Consumers Energy Company | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 30,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 30,000,000 |
Amount Available | 0 |
CMS Energy Corporation | $550m Revolving Credit Facilities June 5, 2023 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | 550,000,000 |
Amount Borrowed | 0 |
Letters of Credit Outstanding | 2,000,000 |
Amount Available | 548,000,000 |
Letter of Credit | Revolving Credit Facilities September 20, 2025 | |
Line of Credit Facility [Line Items] | |
Amount of Facility | $ 8,000,000 |
Financings and Capitalization_4
Financings and Capitalization (Narrative) (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing And Capitalization [Line Items] | |||
Amount available for dividend payments | $ 4,900,000,000 | $ 4,900,000,000 | |
Common stock dividends from Consumers | $ 272,000,000 | ||
Stock offering program maximum value | $ 250,000,000 | ||
Settlement required (in shares) | 621,923 | 621,923 | |
Consumers Energy Company | |||
Financing And Capitalization [Line Items] | |||
Unrestricted retained earnings | $ 1,300,000,000 | $ 1,300,000,000 | |
Consumers Energy Company | Commercial Paper | |||
Financing And Capitalization [Line Items] | |||
Short-term debt, authorized borrowings | 500,000,000 | ||
Short-term debt | 0 | $ 0 | |
Forward Contracts | |||
Financing And Capitalization [Line Items] | |||
Forward sales contracts aggregate price | $ 250,000,000 |
Financings and Capitalization_5
Financings and Capitalization (Forward Stock Contracts) (Details) - $ / shares | Feb. 21, 2019 | Nov. 20, 2018 | Nov. 16, 2018 |
Forward Contracts Maturing May 16, 2020 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 2,017,783 | ||
Initial forward price (in dollars per share) | $ 49.06 | ||
Forward Contracts Maturing May 20, 2020 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 777,899 | ||
Initial forward price (in dollars per share) | $ 50.91 | ||
Forward Contracts Maturing August 21, 2020 | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of Shares | 2,083,340 | ||
Initial forward price (in dollars per share) | $ 52.27 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Restricted cash and cash equivalents | $ 22 | $ 21 |
DB SERP cash equivalents | 0 | 1 |
Derivative instruments | 2 | 1 |
Liabilities | ||
Derivative instruments | 11 | 3 |
Consumers Energy Company | ||
Assets | ||
Restricted cash and cash equivalents | 16 | 17 |
Derivative instruments | 2 | 1 |
Liabilities | ||
Derivative instruments | 1 | 0 |
Fair Value, Inputs, Level 1 | ||
Assets | ||
Cash equivalents | 18 | 27 |
Restricted cash and cash equivalents | 22 | 21 |
Nonqualified deferred compensation plan assets | 16 | 14 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 16 | 14 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | ||
Assets | ||
Cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 16 | 17 |
Nonqualified deferred compensation plan assets | 12 | 10 |
Liabilities | ||
Nonqualified deferred compensation plan liabilities | 12 | 10 |
Fair Value, Inputs, Level 1 | DB SERP | ||
Assets | ||
DB SERP cash equivalents | 0 | 1 |
Fair Value, Inputs, Level 1 | DB SERP | Consumers Energy Company | ||
Assets | ||
DB SERP cash equivalents | 0 | 0 |
Fair Value, Inputs, Level 1 | Common Stock | Consumers Energy Company | ||
Assets | ||
CMS Energy common stock | 1 | 1 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Assets | ||
Total | 58 | 64 |
Liabilities | ||
Total | 27 | 17 |
Fair Value, Inputs, Level 1, 2 and 3 | Consumers Energy Company | ||
Assets | ||
Total | 31 | 29 |
Liabilities | ||
Total | $ 13 | $ 10 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (loss) on derivatives | $ (3) | $ (4) | |
Derivative instruments | 11 | 11 | $ 3 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative notional amount | 95 | 95 | |
Cash Flow Hedging | Other Liabilities | Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instruments | 6 | 6 | $ 3 |
Fair Value Hedging | EnerBank | Designated as Hedging Instrument | Interest Rate Swap Notes Receivable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative notional amount | 61 | 61 | |
Fair Value Hedging | Other Liabilities | EnerBank | Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative instruments | $ 1 | $ 1 |
Financial Instruments (Schedule
Financial Instruments (Schedule Of Carrying Amounts And Fair Values Of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Securities held to maturity | $ 26 | $ 21 |
Liabilities | ||
EnerBank notes receivable, net of allowance for loan losses | 249 | 233 |
Other current liabilities | 3 | 1 |
Long-term debt, current | 1,100 | 1,000 |
Carrying Amount | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable | 2,231 | 1,857 |
Securities held to maturity | 26 | 22 |
Liabilities | ||
Long-term debt | 12,292 | 11,589 |
Long-term payables | 28 | 27 |
Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable | 2,359 | 1,967 |
Securities held to maturity | 26 | 21 |
Liabilities | ||
Long-term debt | 13,112 | 11,630 |
Long-term payables | 29 | 27 |
Consumers Energy Company | ||
Liabilities | ||
Long-term debt, current | 26 | 26 |
Current portion notes receivable related party | 7 | 7 |
Consumers Energy Company | Carrying Amount | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable related party | 105 | 106 |
Liabilities | ||
Long-term debt | 6,572 | 6,805 |
Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable related party | 105 | 106 |
Liabilities | ||
Long-term debt | 7,102 | 6,833 |
EnerBank | ||
Liabilities | ||
EnerBank notes receivable, net of allowance for loan losses | 249 | 233 |
Other Receivables | Consumers Energy Company | ||
Liabilities | ||
Accounts receivable, current | 14 | 14 |
Fair Value, Inputs, Level 1 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable | 0 | 0 |
Securities held to maturity | 0 | 0 |
Liabilities | ||
Long-term debt | 1,177 | 459 |
Long-term payables | 0 | 0 |
Fair Value, Inputs, Level 1 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Fair Value, Inputs, Level 2 | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable | 0 | 0 |
Securities held to maturity | 26 | 21 |
Liabilities | ||
Long-term debt | 10,053 | 9,404 |
Long-term payables | 0 | 0 |
Fair Value, Inputs, Level 2 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 0 | 0 |
Notes receivable related party | 0 | 0 |
Liabilities | ||
Long-term debt | 5,220 | 5,066 |
Fair Value, Inputs, Level 3 | Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable | 2,359 | 1,967 |
Securities held to maturity | 0 | 0 |
Liabilities | ||
Long-term debt | 1,882 | 1,767 |
Long-term payables | 29 | 27 |
Fair Value, Inputs, Level 3 | Consumers Energy Company | Fair Value | ||
Assets | ||
Long-term receivables | 20 | 22 |
Notes receivable related party | 105 | 106 |
Liabilities | ||
Long-term debt | $ 1,882 | $ 1,767 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Consumers Energy Company | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Portion of long-term debt supported by third-party credit enhancements | $ 35 | $ 35 |
Financial Instruments (Schedu_2
Financial Instruments (Schedule Of Investment Securities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Held to maturity | ||
Cost | $ 26 | $ 22 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 1 |
Securities held to maturity | $ 26 | $ 21 |
Notes Receivable (Schedule Of C
Notes Receivable (Schedule Of Current And Non-Current Notes Receivable) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current | ||
EnerBank notes receivable, net of allowance for loan losses | $ 249 | $ 233 |
Consumers Energy Company | ||
Current | ||
DB SERP note receivable – related party | 7 | 7 |
Non‑current | ||
DB SERP note receivable – related party | 98 | 99 |
Total notes receivable | 105 | 106 |
EnerBank | ||
Current | ||
EnerBank notes receivable, net of allowance for loan losses | 249 | 233 |
Non‑current | ||
EnerBank notes receivable | 1,982 | 1,624 |
Total notes receivable | $ 2,231 | $ 1,857 |
Notes Receivable (Narrative) (D
Notes Receivable (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
EnerBank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 2,231 | $ 1,857 |
Unearned income | 122 | 102 |
Delinquent loans | 24 | 21 |
Consumers Energy Company | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 105 | 106 |
Current portion notes receivable related party | 7 | $ 7 |
Retail Installment Contracts | EnerBank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | $ 238 | |
CMS Energy Note Payable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest Rate | 4.10% |
Leases - Lessee Leases Narrati
Leases - Lessee Leases Narrative (Details) | Jun. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Finance leases | 12 years |
Real Estate | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining term without extension provisions | 42 years |
Minimum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 3 years |
Maximum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 60 years |
Consumers Energy Company | |
Lessee, Lease, Description [Line Items] | |
Finance leases | 12 years |
Consumers Energy Company | Railcars | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining term without extension provisions | 4 years |
Consumers Energy Company | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Operating lease remaining term without extension provisions | 42 years |
Consumers Energy Company | Service Vehicles | |
Lessee, Lease, Description [Line Items] | |
Finance lease remaining term | 7 years |
Consumers Energy Company | Minimum | Railcars | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 5 years |
Consumers Energy Company | Minimum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 3 years |
Consumers Energy Company | Minimum | Service Vehicles | |
Lessee, Lease, Description [Line Items] | |
Finance lease term | 5 years |
Consumers Energy Company | Minimum | PPAs | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease remaining term | 1 year |
Consumers Energy Company | Maximum | Railcars | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 15 years |
Consumers Energy Company | Maximum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 60 years |
Consumers Energy Company | Maximum | Service Vehicles | |
Lessee, Lease, Description [Line Items] | |
Finance lease term | 10 years |
Consumers Energy Company | Maximum | PPAs | |
Lessee, Lease, Description [Line Items] | |
Operating and finance lease remaining term | 14 years |
D.E. Karn Generating Complex | Consumers Energy Company | Gas Pipelines | |
Lessee, Lease, Description [Line Items] | |
Finance lease term | 15 years |
Finance leases | 3 years |
Zeeland | Consumers Energy Company | Gas Pipelines | |
Lessee, Lease, Description [Line Items] | |
Finance lease term | 5 years |
Zeeland | Consumers Energy Company | Minimum | Gas Pipelines | |
Lessee, Lease, Description [Line Items] | |
Finance lease renewal term | 5 years |
Zeeland | Consumers Energy Company | Maximum | Gas Pipelines | |
Lessee, Lease, Description [Line Items] | |
Finance lease renewal term | 10 years |
Leases - Assets and Liabilities
Leases - Assets and Liabilities of Lessee (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Operating leases | ||
Right-of-use assets | $ 51 | |
Lease liabilities | ||
Current lease liabilities | 10 | |
Noncurrent lease liabilities | 41 | |
Finance leases | ||
Right-of-use assets | 76 | |
Lease liabilities | ||
Current lease liabilities | 7 | |
Non-current lease liabilities | $ 63 | |
Weighted-average remaining lease term (in years) | ||
Operating leases | 16 years | |
Finance leases | 12 years | |
Weighted-average discount rate | ||
Operating leases | 3.70% | |
Finance leases | 2.00% | |
Related party lease liability | $ 9 | $ 10 |
Consumers Energy Company | ||
Operating leases | ||
Right-of-use assets | 44 | |
Lease liabilities | ||
Current lease liabilities | 8 | |
Noncurrent lease liabilities | 35 | |
Finance leases | ||
Right-of-use assets | 76 | |
Lease liabilities | ||
Current lease liabilities | 7 | |
Non-current lease liabilities | $ 63 | |
Weighted-average remaining lease term (in years) | ||
Operating leases | 13 years | |
Finance leases | 12 years | |
Weighted-average discount rate | ||
Operating leases | 3.70% | |
Finance leases | 2.00% | |
Related party lease liability | $ 16 | $ 14 |
Related Party Lease | ||
Weighted-average discount rate | ||
Related party lease liability | 25 | |
Related party lease liability | 1 | |
Related Party Lease | Consumers Energy Company | ||
Weighted-average discount rate | ||
Related party lease liability | 25 | |
Related party lease liability | $ 1 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 3 | $ 6 |
Finance lease costs | ||
Amortization of right-of-use assets | 2 | 4 |
Interest on lease liabilities | 5 | 9 |
Variable lease costs | 24 | 55 |
Total lease costs | 34 | 74 |
Consumers Energy Company | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 3 | 5 |
Finance lease costs | ||
Amortization of right-of-use assets | 2 | 4 |
Interest on lease liabilities | 5 | 9 |
Variable lease costs | 24 | 55 |
Total lease costs | $ 34 | $ 73 |
Leases - Schedule of Lessee Cas
Leases - Schedule of Lessee Cash Flows (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Cash used in operating activities for operating leases | $ 5 |
Cash used in operating activities for finance leases | 9 |
Cash used in financing activities for finance leases | 3 |
Consumers Energy Company | |
Lessee, Lease, Description [Line Items] | |
Cash used in operating activities for operating leases | 5 |
Cash used in operating activities for finance leases | 9 |
Cash used in financing activities for finance leases | $ 3 |
Leases - Minimum Annual Rental
Leases - Minimum Annual Rental Commitments post Topic 842 (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 5 |
2020 | 11 |
2021 | 11 |
2022 | 5 |
2023 | 3 |
2024 | 2 |
2025 and thereafter | 35 |
Total minimum lease payments | 72 |
Less discount | 21 |
Present value of minimum lease payments | 51 |
Finance Leases | |
Remainder of 2019 | 14 |
2020 | 23 |
2021 | 22 |
2022 | 19 |
2023 | 18 |
2024 | 16 |
2025 and thereafter | 90 |
Total minimum lease payments | 202 |
Less discount | 132 |
Present value of minimum lease payments | 70 |
Consumers Energy Company | |
Operating Leases | |
Remainder of 2019 | 5 |
2020 | 9 |
2021 | 9 |
2022 | 4 |
2023 | 3 |
2024 | 2 |
2025 and thereafter | 28 |
Total minimum lease payments | 60 |
Less discount | 17 |
Present value of minimum lease payments | 43 |
Finance Leases | |
Remainder of 2019 | 14 |
2020 | 23 |
2021 | 22 |
2022 | 19 |
2023 | 18 |
2024 | 16 |
2025 and thereafter | 90 |
Total minimum lease payments | 202 |
Less discount | 132 |
Present value of minimum lease payments | 70 |
Pipelines and PPAs | |
Finance Leases | |
Remainder of 2019 | 9 |
2020 | 17 |
2021 | 17 |
2022 | 14 |
2023 | 13 |
2024 | 13 |
2025 and thereafter | 79 |
Total minimum lease payments | 162 |
Less discount | 128 |
Present value of minimum lease payments | 34 |
Pipelines and PPAs | Consumers Energy Company | |
Finance Leases | |
Remainder of 2019 | 9 |
2020 | 17 |
2021 | 17 |
2022 | 14 |
2023 | 13 |
2024 | 13 |
2025 and thereafter | 79 |
Total minimum lease payments | 162 |
Less discount | 128 |
Present value of minimum lease payments | 34 |
Other | |
Finance Leases | |
Remainder of 2019 | 5 |
2020 | 6 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024 | 3 |
2025 and thereafter | 11 |
Total minimum lease payments | 40 |
Less discount | 4 |
Present value of minimum lease payments | 36 |
Other | Consumers Energy Company | |
Finance Leases | |
Remainder of 2019 | 5 |
2020 | 6 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024 | 3 |
2025 and thereafter | 11 |
Total minimum lease payments | 40 |
Less discount | 4 |
Present value of minimum lease payments | $ 36 |
Leases - Minimum Annual Renta_2
Leases - Minimum Annual Rental Commitments pre Topic 842 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Capital Leases | |
2019 | $ 14 |
2020 | 11 |
2021 | 11 |
2022 | 8 |
2023 | 6 |
2024 and thereafter | 21 |
Total minimum lease payments | 71 |
Less discount | 22 |
Present value of minimum lease payments | 49 |
Less current portion | 9 |
Non-current portion | 40 |
Operating Leases | |
2019 | 16 |
2020 | 15 |
2021 | 15 |
2022 | 8 |
2023 | 5 |
2024 and thereafter | 38 |
Total minimum lease payments | 97 |
Consumers Energy Company | |
Capital Leases | |
2019 | 14 |
2020 | 11 |
2021 | 11 |
2022 | 8 |
2023 | 6 |
2024 and thereafter | 21 |
Total minimum lease payments | 71 |
Less discount | 22 |
Present value of minimum lease payments | 49 |
Less current portion | 9 |
Non-current portion | 40 |
Operating Leases | |
2019 | 14 |
2020 | 14 |
2021 | 13 |
2022 | 7 |
2023 | 5 |
2024 and thereafter | 32 |
Total minimum lease payments | $ 85 |
Leases - Lessor Leases Narrativ
Leases - Lessor Leases Narrative (Details) $ in Millions | Jun. 30, 2019 | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Power Sales Agreement | |||
Lessor, Lease, Description [Line Items] | |||
Leasing income | $ 42 | $ 90 | |
Variable lease income | $ 29 | $ 63 | |
Power Sales Agreement | Minimum | |||
Lessor, Lease, Description [Line Items] | |||
Operating leases remaining term | 3 years | ||
Power Sales Agreement | Maximum | |||
Lessor, Lease, Description [Line Items] | |||
Operating leases remaining term | 24 years | ||
Natural Gas Processing Plant | Consumers Energy Company | |||
Lessor, Lease, Description [Line Items] | |||
Direct financing lease term | 20 years | 20 years | 20 years |
CMS Energy Subsidiary | Natural Gas Transportation Agreement | Consumers Energy Company | |||
Lessor, Lease, Description [Line Items] | |||
Direct financing lease term | 20 years | 20 years | 20 years |
Leases - Schedule of Future Pay
Leases - Schedule of Future Payments to be Received (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 28 |
2020 | 54 |
2021 | 54 |
2022 | 48 |
2023 | 44 |
2024 | 44 |
2025 and thereafter | 62 |
Total minimum lease payments | 334 |
Direct Financing Leases | |
Remainder of 2019 | 0 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and thereafter | 10 |
Total minimum lease payments | 10 |
Less unearned income | 5 |
Present value of lease payments recognized as lease receivables | 5 |
Consumers Energy Company | |
Direct Financing Leases | |
Remainder of 2019 | 1 |
2020 | 1 |
2021 | 1 |
2022 | 1 |
2023 | 1 |
2024 | 1 |
2025 and thereafter | 19 |
Total minimum lease payments | 25 |
Less unearned income | 15 |
Present value of lease payments recognized as lease receivables | $ 10 |
Retirement Benefits (Schedule O
Retirement Benefits (Schedule Of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
DB Pension Plans | ||||
Net periodic cost (credit) | ||||
Service cost | $ 10 | $ 12 | $ 20 | $ 24 |
Interest cost | 24 | 23 | 49 | 45 |
Expected return on plan assets | (41) | (37) | (81) | (74) |
Amortization of: | ||||
Net loss | 12 | 19 | 24 | 37 |
Prior service cost (credit) | 1 | 0 | 1 | 1 |
Net periodic cost (credit) | 6 | 17 | 13 | 33 |
DB Pension Plans | Consumers Energy Company | ||||
Net periodic cost (credit) | ||||
Service cost | 10 | 11 | 20 | 23 |
Interest cost | 23 | 21 | 46 | 42 |
Expected return on plan assets | (38) | (34) | (76) | (69) |
Amortization of: | ||||
Net loss | 11 | 18 | 23 | 36 |
Prior service cost (credit) | 1 | 0 | 1 | 1 |
Net periodic cost (credit) | 7 | 16 | 14 | 33 |
OPEB Plan | ||||
Net periodic cost (credit) | ||||
Service cost | 3 | 5 | 7 | 9 |
Interest cost | 10 | 9 | 20 | 18 |
Expected return on plan assets | (22) | (25) | (44) | (49) |
Amortization of: | ||||
Net loss | 6 | 4 | 13 | 8 |
Prior service cost (credit) | (15) | (17) | (31) | (34) |
Net periodic cost (credit) | (18) | (24) | (35) | (48) |
OPEB Plan | Consumers Energy Company | ||||
Net periodic cost (credit) | ||||
Service cost | 4 | 4 | 7 | 8 |
Interest cost | 10 | 9 | 20 | 17 |
Expected return on plan assets | (20) | (23) | (41) | (46) |
Amortization of: | ||||
Net loss | 6 | 4 | 13 | 8 |
Prior service cost (credit) | (16) | (16) | (31) | (32) |
Net periodic cost (credit) | $ (16) | $ (22) | $ (32) | $ (45) |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||||
U.S. federal income tax rate | 21.00% | 21.00% | |||
Increase (decrease) in income taxes from: | |||||
State and local income taxes, net of federal effect | 5.40% | 5.60% | |||
TCJA excess deferred taxes | (3.50%) | (3.40%) | |||
Production tax credits | (2.50%) | (1.70%) | |||
Accelerated flow-through of regulatory tax benefits | (1.50%) | (5.00%) | |||
Research and development tax credits, net | (0.20%) | (2.20%) | |||
Other, net | (0.60%) | 0.30% | |||
Effective tax rate | 18.10% | 14.60% | |||
Regulatory liabilities, noncurrent | $ 3,786 | $ 3,681 | |||
Consumers Energy Company | |||||
Income Taxes [Line Items] | |||||
U.S. federal income tax rate | 21.00% | 21.00% | |||
Increase (decrease) in income taxes from: | |||||
State and local income taxes, net of federal effect | 5.70% | 5.80% | |||
TCJA excess deferred taxes | (3.20%) | (3.20%) | |||
Production tax credits | (1.30%) | (1.50%) | |||
Accelerated flow-through of regulatory tax benefits | (1.80%) | (4.70%) | |||
Research and development tax credits, net | (0.20%) | (2.10%) | |||
Other, net | (0.40%) | 0.00% | |||
Effective tax rate | 19.80% | 15.30% | |||
Reduction of income tax expense | $ 7 | $ 22 | |||
Regulatory liabilities, noncurrent | 3,786 | $ 3,681 | |||
Research Tax Credit Carryforward | Consumers Energy Company | |||||
Increase (decrease) in income taxes from: | |||||
Increase in credit | $ 8 | ||||
Plant, Property, And Equipment (Subject To Normalization) | Consumers Energy Company | |||||
Increase (decrease) in income taxes from: | |||||
Regulatory liabilities | $ 1,800 | ||||
TCJA Reserve For Refund | Consumers Energy Company | |||||
Increase (decrease) in income taxes from: | |||||
Regulatory liabilities, noncurrent | $ 53 |
Earnings Per Share - CMS Ener_3
Earnings Per Share - CMS Energy (Basic And Diluted EPS Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income available to common stockholders | ||||
Net income | $ 94 | $ 140 | $ 307 | $ 381 |
Income Attributable to Noncontrolling Interests | 1 | 1 | 1 | 1 |
Net Income Available to Common Stockholders | $ 93 | $ 139 | $ 306 | $ 380 |
Average common shares outstanding | ||||
Weighted average shares - basic (in shares) | 282.9 | 282.1 | 282.9 | 281.8 |
Dilutive nonvested stock awards (in shares) | 0.6 | 0.5 | 0.6 | 0.6 |
Dilutive forward equity sale contracts (in shares) | 0.5 | 0 | 0.3 | 0 |
Weighted average shares - diluted (in shares) | 284 | 282.6 | 283.8 | 282.4 |
Net income per average common share available to common stockholders | ||||
Basic earnings per average common share (in dollars per share) | $ 0.33 | $ 0.49 | $ 1.08 | $ 1.35 |
Diluted earnings per average common share (in dollars per share) | $ 0.33 | $ 0.49 | $ 1.08 | $ 1.35 |
Revenue (Components Of Operatin
Revenue (Components Of Operating Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | $ 1,347 | $ 1,413 | $ 3,304 | $ 3,286 |
Leasing income | 42 | 90 | ||
Leasing income | 37 | 76 | ||
Financing income | 56 | 40 | 110 | 79 |
Alternative revenue programs | 2 | 4 | ||
Total operating revenue | 1,445 | 1,492 | 3,504 | 3,445 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 16 | 24 | 35 | 48 |
Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,331 | 1,389 | 3,269 | 3,238 |
Financing income | 3 | 4 | 8 | 8 |
Alternative revenue programs | 2 | 4 | ||
Total operating revenue | 1,334 | 1,395 | 3,277 | 3,250 |
Consumers Energy Company | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 621 | 669 | 1,733 | 1,707 |
Consumers Energy Company | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 420 | 444 | 945 | 967 |
Consumers Energy Company | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 182 | 179 | 369 | 346 |
Consumers Energy Company | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 108 | 97 | 222 | 218 |
Operating Segments | Electric Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,026 | 1,087 | 2,126 | 2,163 |
Financing income | 1 | 2 | 4 | 4 |
Total operating revenue | 1,027 | 1,089 | 2,130 | 2,167 |
Operating Segments | Gas Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 305 | 302 | 1,143 | 1,075 |
Financing income | 2 | 2 | 4 | 4 |
Alternative revenue programs | 2 | 4 | ||
Total operating revenue | 307 | 306 | 1,147 | 1,083 |
Operating Segments | Enterprises | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 16 | 24 | 35 | 48 |
Leasing income | 42 | 90 | ||
Leasing income | 37 | 76 | ||
Total operating revenue | 58 | 61 | 125 | 124 |
Operating Segments | Enterprises | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 16 | 24 | 35 | 48 |
Operating Segments | Consumers Energy Company | Electric Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 1,026 | 1,087 | 2,126 | 2,163 |
Financing income | 1 | 2 | 4 | 4 |
Total operating revenue | 1,027 | 1,089 | 2,130 | 2,167 |
Operating Segments | Consumers Energy Company | Electric Utility | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 423 | 475 | 946 | 976 |
Operating Segments | Consumers Energy Company | Electric Utility | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 362 | 386 | 713 | 747 |
Operating Segments | Consumers Energy Company | Electric Utility | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 174 | 170 | 336 | 313 |
Operating Segments | Consumers Energy Company | Electric Utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 67 | 56 | 131 | 127 |
Operating Segments | Consumers Energy Company | Gas Utility | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 305 | 302 | 1,143 | 1,075 |
Financing income | 2 | 2 | 4 | 4 |
Alternative revenue programs | 2 | 4 | ||
Total operating revenue | 307 | 306 | 1,147 | 1,083 |
Operating Segments | Consumers Energy Company | Gas Utility | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 198 | 194 | 787 | 731 |
Operating Segments | Consumers Energy Company | Gas Utility | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 58 | 58 | 232 | 220 |
Operating Segments | Consumers Energy Company | Gas Utility | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 8 | 9 | 33 | 33 |
Operating Segments | Consumers Energy Company | Gas Utility | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized from contracts with customers | 41 | 41 | 91 | 91 |
Operating Segments | Consumers Energy Company | Enterprises | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | 0 | 0 | 0 | 0 |
Other reconciling items | ||||
Disaggregation of Revenue [Line Items] | ||||
Financing income | 53 | 36 | 102 | 71 |
Total operating revenue | 53 | 36 | 102 | 71 |
Other reconciling items | Consumers Energy Company | ||||
Disaggregation of Revenue [Line Items] | ||||
Total operating revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Uncollectable expense | $ 6 | $ 7 | $ 12 | $ 14 | |
Consumers Energy Company | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Uncollectable expense | 6 | $ 7 | 12 | $ 14 | |
Unbilled receivables | $ 257 | $ 257 | $ 409 |
Cash And Cash Equivalents (Sche
Cash And Cash Equivalents (Schedule Of Cash And Cash Equivalents, Including Restricted Amounts) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 312 | $ 153 | ||
Restricted cash and cash equivalents | 22 | 21 | ||
Other non-current assets | 0 | 1 | ||
Cash and cash equivalents, including restricted amounts | 334 | 175 | $ 501 | $ 204 |
Consumers Energy Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 196 | 39 | ||
Restricted cash and cash equivalents | 16 | 17 | ||
Cash and cash equivalents, including restricted amounts | $ 212 | $ 56 | $ 276 | $ 65 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Operating Revenue | $ 1,445 | $ 1,492 | $ 3,504 | $ 3,445 | |
Net income (loss) available to common stockholders | 93 | 139 | 306 | 380 | |
Plant, property, and equipment, gross | 24,263 | 24,263 | $ 24,400 | ||
Total Assets | 25,292 | 25,292 | 24,529 | ||
Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,334 | 1,395 | 3,277 | 3,250 | |
Net income (loss) available to common stockholder | 97 | 151 | 323 | 393 | |
Plant, property, and equipment, gross | 23,833 | 23,833 | 23,963 | ||
Total Assets | 22,416 | 22,416 | 22,025 | ||
Operating Segments | Electric Utility | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,027 | 1,089 | 2,130 | 2,167 | |
Net income (loss) available to common stockholders | 90 | 130 | 195 | 269 | |
Plant, property, and equipment, gross | 15,660 | 15,660 | 16,027 | ||
Total Assets | 14,396 | 14,396 | 14,079 | ||
Operating Segments | Electric Utility | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 1,027 | 1,089 | 2,130 | 2,167 | |
Net income (loss) available to common stockholder | 90 | 130 | 195 | 269 | |
Plant, property, and equipment, gross | 15,660 | 15,660 | 16,027 | ||
Total Assets | 14,459 | 14,459 | 14,143 | ||
Operating Segments | Gas Utility | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 307 | 306 | 1,147 | 1,083 | |
Net income (loss) available to common stockholders | 8 | 21 | 129 | 124 | |
Plant, property, and equipment, gross | 8,154 | 8,154 | 7,919 | ||
Total Assets | 7,890 | 7,890 | 7,806 | ||
Operating Segments | Gas Utility | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 307 | 306 | 1,147 | 1,083 | |
Net income (loss) available to common stockholder | 8 | 21 | 129 | 124 | |
Plant, property, and equipment, gross | 8,154 | 8,154 | 7,919 | ||
Total Assets | 7,937 | 7,937 | 7,853 | ||
Operating Segments | Enterprises | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 58 | 61 | 125 | 124 | |
Net income (loss) available to common stockholders | 10 | 14 | 11 | 29 | |
Plant, property, and equipment, gross | 405 | 405 | 412 | ||
Total Assets | 522 | 522 | 540 | ||
Operating Segments | Enterprises | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 0 | 0 | 0 | 0 | |
Other reconciling items | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 53 | 36 | 102 | 71 | |
Net income (loss) available to common stockholders | (15) | (26) | (29) | (42) | |
Plant, property, and equipment, gross | 44 | 44 | 42 | ||
Total Assets | 2,484 | 2,484 | 2,104 | ||
Other reconciling items | Consumers Energy Company | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenue | 0 | 0 | 0 | 0 | |
Net income (loss) available to common stockholder | (1) | $ 0 | (1) | $ 0 | |
Plant, property, and equipment, gross | 19 | 19 | 17 | ||
Total Assets | $ 20 | $ 20 | $ 29 |
Asset Sales - Schedule of Asse
Asset Sales - Schedule of Assets Held For Sale (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets | $ 40 | $ 0 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Plant, property, and equipment, net | 32 | |
Construction work in progress | 8 | |
Total assets | 40 | |
Consumers Energy Company | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets | $ 40 | $ 0 |
Asset Sales - Narrative (Detail
Asset Sales - Narrative (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2019USD ($) | |
DIG's High-Voltage Equipment to ITC | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Gain on disposition of assets | $ 16 |
Uncategorized Items - consumers
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Retained Earnings [Member] | Consumers Energy Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 19,000,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (11,000,000) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Consumers Energy Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (5,000,000) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | Consumers Energy Company [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (12,000,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |